Bethea's Byte
Worst Day of an Awful Year Leaves No Corner of Market Unscathed Hizmr
Welcome to Bethea's Byte. If you are a member, please sign in and participate. If you are not a member, please sign up and join the conversation. We'd love to hear from you.
Bethea's Byte
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Welcome
Log in

I forgot my password

Notifications
    Who is online?
    In total there are 2 users online :: 1 Registered, 0 Hidden and 1 Guest

    The Last Outlaw

    [ View the whole list ]


    Most users ever online was 156 on Wed Jul 03, 2019 11:22 am
    Recent Members
    See more
    Statistics
    We have 40 registered users
    The newest registered user is Ben E

    Our users have posted a total of 3993 messages in 1809 subjects
    July 2022
    SunMonTueWedThuFriSat
         12
    3456789
    10111213141516
    17181920212223
    24252627282930
    31      

    Calendar Calendar

    Affiliate With Bethea’s Byte


    Bethea's Byte

    Anti-Spam Bots!

    Submit Your Site To The Web's Top 50 Search Engines for Free!






    The Coffee House


    Planet Nexus





    IconSkouliki
    BG Music

    Worst Day of an Awful Year Leaves No Corner of Market Unscathed

    View previous topic View next topic Go down

    The Last Outlaw
    The Last Outlaw
    Head Administrator
    Head Administrator
    Location : Salem, Oregon
    Gender : Male
    Posts : 2617 Zodiac Sign : Aquarius Age : 46 Birthday : 1976-02-07
    Join date : 2018-05-25
    Status :
    Online
    Offline

    http://betheasbyte.com/

    PostThe Last Outlaw Tue Nov 20, 2018 3:06 pm

    Worst Day of an Awful Year Leaves No Corner of Market Unscathed GTSA

    From Bloomberg

    Lu Wang, Elena Popina and Vildana Hajric of Bloomberg wrote:One of the toughest years for financial markets in half a century got appreciably worse Tuesday, with simmering weakness across assets boiling over to leave investors with virtually nowhere to hide.

    Stocks buckled for a second day, sending the S&P 500 careening toward a correction. Oil plumbed depths last seen a year ago, while credit markets -- recently impervious -- showed signs of shaking apart. Bitcoin is in a freefall, while traditional havens like Treasuries, gold and the yen stood still.

    Worst Day of an Awful Year Leaves No Corner of Market Unscathed BBPVxJv

    Add it all up -- the 2 percent drop in equities, oil’s 6 percent plunge, the downdraft in corporate bonds -- and markets ended up doling out one of the worst single-session losses since 2015. The S&P 500 erased its gain for 2018, oil tumbled to a one-year low and and an ETF tracking junk bonds capped its worst streak of declines since 2014.

    “While there’s still no ‘panic in the streets,’ most traders are unconvinced that the selling will slow down anytime soon,” said Larry Weiss, head of trading for Instinet LLC in New York. “The flight to quality is now a flight to cash. It’s tough to convince anyone that now is the time to put money to work.”

    Behind the harmonizing losses is dread for the future. Corporate earnings, the fuel for the longest bull market ever recorded in U.S. stocks, appear to have peaked, and President Donald Trump’s trade war shows no sign of abating. As grim as the message from markets has been, Jay Powell’s Federal Reserve shows no sign of easing back on the interest rate hikes that create nightmares for holders of some $5 trillion in corporate bonds that have been sold by S&P 500 companies in the past decade.

    Worst Day of an Awful Year Leaves No Corner of Market Unscathed BBPVvy3

    Signs of unwinding multiplied. Hedge funds, who dove back into tech stocks at the end of October, have turned net sellers again this month, with the group accounting for the most selling among major industries, client data compiled by Goldman Sachs showed. Meanwhile, they boosted bearish bets against Internet software developers and electronic equipment makers.

    “There’s a lot of money looking to be invested and not a lot of places that look appealing enough,” said Bruce McCain, chief investment strategist at KeyBank. “What’s causing the decline across the asset classes is this: are we going to slide into a recession or are we going to achieve lower growth rate but one that’s more sustainable?”

    As of Nov. 15, hedge fund exposure to tech stocks hovered at the lowest relative to the market since December 2015.

    With bouts of volatility migrating from market to market, 2018 was already trying traders’ nerves. Going by one back-of-the-envelope measure -- the year-to-date return of the best performing asset -- it’s the been the hardest year to invest since the early 1970s, data compiled by Bloomberg show.

    Worst Day of an Awful Year Leaves No Corner of Market Unscathed BBPVvy8

    While the buzzword for the first half was rotation, now losses are taking on a troubling unanimity. Every sector in the S&P 500 fell on Tuesday, a day after every member of the 67-company S&P 500 Information Technology Index dropped. Disparate corners of the stock market are seeing reversals, from the tech high-flyers like Apple and Alphabet that led the way up to higher-leverage names that have been trailing for months.

    “There isn’t an industry that doesn’t have something wrong with it,” said Kim Forrest, a senior portfolio manager at Fort Pitt Capital Group. “Every industry is getting sold. Every industry has a little black mark on it -- at least one. So everyone is selling those stocks that are tainted with bad news -- everything.”

    For investors with a sense of history, the most stomach-turning spectacle has been the deterioration in credit, where the extra yield investors demand over Treasuries widened and new bond sales showed signs of stress. Suddenly, investment-grade bonds are on track for their worst year in terms of total returns since 2008 as the Fed continues to raise rates.

    “You always must respect what the credit markets are signaling,” said Quincy Krosby, chief market strategist at Prudential Financial Inc. “Very often it starts with the credit markets and works its way to the equity market. But this time, it’s suggestive of a credit market getting worried about the equity market, and more about the economy.”

    Federal Reserve Bank of Minneapolis President Neel Kashkari, who’s repeatedly called for caution on raising interest rates, said further tightening could trigger a recession.

    “One of my concerns is that if we preemptively raise interest rates, and it’s not in fact necessary, we might be the cause of ending the expansion” and triggering the next recession, Kashkari said in a National Public Radio interview posted online Tuesday. He said the Fed should “pause and see how the economy continues to evolve.”

    For more articles like this, please visit us at bloomberg.com

    ©️2018 Bloomberg L.P.

    I do hope you're paying attention to this Mr. Trump.  Part this is due to your trade war.  If this keeps going, you are gonna suffer another major set back and we (the people) will be the ones who will suffer the fallout from it.

    Just saying.
    Worst Day of an Awful Year Leaves No Corner of Market Unscathed R9Zf

    _________________
    Worst Day of an Awful Year Leaves No Corner of Market Unscathed Ro5An
    Worst Day of an Awful Year Leaves No Corner of Market Unscathed RhD4cWorst Day of an Awful Year Leaves No Corner of Market Unscathed RhfbI


    UFC Fight Night 192: Smith vs. Spann
    Kyng
    Contributing Manager
    Contributing Manager
    Posts : 588 Join date : 2018-05-30
    Status :
    Online
    Offline

    PostKyng Wed Nov 21, 2018 2:10 pm

    Well, yeah: the unprecedented growth of 2017 was never going to be sustainable. But, I really don't think the constant threat of a trade war is helping.

    And it really doesn't help that he constantly bounces between "Trade deal with China" and "Trade war with China". That just introduces all kinds of uncertainty - and the markets *hate* uncertainty.
    The Last Outlaw
    The Last Outlaw
    Head Administrator
    Head Administrator
    Location : Salem, Oregon
    Gender : Male
    Posts : 2617 Zodiac Sign : Aquarius Age : 46 Birthday : 1976-02-07
    Join date : 2018-05-25
    Status :
    Online
    Offline

    http://betheasbyte.com/

    PostThe Last Outlaw Wed Nov 21, 2018 2:18 pm

    That they do! Again, it's a case of say what you mean, and mean what you say.

    Sent from Topic'it App

    _________________
    Worst Day of an Awful Year Leaves No Corner of Market Unscathed Ro5An
    Worst Day of an Awful Year Leaves No Corner of Market Unscathed RhD4cWorst Day of an Awful Year Leaves No Corner of Market Unscathed RhfbI


    UFC Fight Night 192: Smith vs. Spann

    View previous topic View next topic Back to top

    Create an account or log in to leave a reply

    You need to be a member in order to leave a reply.

    Create an account

    Join our community by creating a new account. It's easy!


    Create a new account

    Log in

    Already have an account? No problem, log in here.


    Log in

     
    Permissions in this forum:
    You cannot reply to topics in this forum