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Investing Discipline

Dow tumbles more than 850 points and dollar slides over Greenland and tariff threats​

US stocks fell sharply Tuesday afternoon as investors continued to express concern about President Donald Trump’s clash with European leaders over ownership of Greenland.

The Dow was down 861 points, or 1.74%, in early afternoon trading. The broader S&P 500 fell 1.96%. The tech-heavy Nasdaq Composite slid 2.2%. The S&P and Nasdaq wiped out their gains for this year.

The S&P and Dow were set for their worst day since October. The Nasdaq was set for its worst day since November.

The VIX index, commonly known as the fear gauge, surged 28% and rose above 20 — a level that signals elevated volatility — for the first time since November.

Investors resumed the so-called “Sell America” trade, selling off the US dollar and bonds. The dollar index, which measures the dollar’s strength against six major currencies, fell 0.9% — a huge move in currency markets. The dollar index was set for its worst day since August.

The benchmark 10-year US Treasury yield, which trades in opposite direction to prices, rose to 4.28%. The 30-year Treasury yield jumped to 4.91%. Both yields hit their highest level since September.

A snap election in Japan also rattled markets in Asia, sending Japanese bond yields surging higher due to nerves about Prime Minister Sanae Takaichi’s proposal to temporarily cut taxes on food despite the government’s enormous debt load. The surge in yields in Japan is adding to bond market jitters.

EXPECT MORTGAGE RATES TO RISE.
 
The catalyst was the tariffs. The CFD market moved 1% lower on Saturday, right after Trump posted about the tariffs.

That said, a 2% down day is just a regular down day. Its not some special buying opportunity.
 
The catalyst was the tariffs. The CFD market moved 1% lower on Saturday, right after Trump posted about the tariffs.

That said, a 2% down day is just a regular down day. Its not some special buying opportunity.
Trump listens to Wall Street. Taco will restrain from his tariff braggadocio.
 
The catalyst was the tariffs. The CFD market moved 1% lower on Saturday, right after Trump posted about the tariffs.

That said, a 2% down day is just a regular down day. Its not some special buying opportunity.
Based on my research and trades based upon that research, I fully expect at least another 100 down on SPX. After that, my trade is over as I don't have a clue where it goes after that.
 
One of the few guys I follow.

 
There is no need for panic or even concern, the Fed can always print more money.


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Trump listens to Wall Street. Taco will restrain from his tariff braggadocio.
U.S. equities and Treasuries rallied after Trump said the U.S. would not proceed with tariffs on Europe that were scheduled to take effect from February 1, speaking at the World Economic Forum in Davos.

FERNANDO WAS RIGHT ABOUT TACO. TRUMP LISTENS TO WALL STREET.
 
There is no need for panic or even concern, the Fed can always print more money.


View attachment 106484
They’ve been doing it ever since Roosevelt took us off the gold standard. Not saying it’s right, but also not saying it’s the end of the world.
They’ve been kicking this can down the road for many years and eventually it will catch up with us. But I don’t see the road coming to the edge of a cliff yet.
Of course it may come a time like when some buddies and I got lost on some back roads and came to a sign that said” road ends in water” and about 50 feet later, the front tires came sliding to a stop in a lake. come to find out, when they built the reservoir, they left the road in place as a boat launch.
Unfortunately, I don’t think we’re going to see any sign in advance that says “economy ends in water.”
 
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