It looks like you're using an Ad Blocker.

Please white-list or disable in your ad-blocking tool.

Thank you.


Some features of ATS will be disabled while you continue to use an ad-blocker.


Dow plunges more than 1,500 at one point - it's the memo.

page: 6
<< 3  4  5   >>

log in


posted on Feb, 7 2018 @ 02:30 AM

originally posted by: visitedbythem
I have to admit something....
The timing is a little strange.

If you consider it a response to the SOTU seems typical.

Sentiment of peak confidence coinciding with peak stock prices. Just a thought. Might be incorrect.

posted on Feb, 7 2018 @ 02:35 AM

originally posted by: dragonridr

originally posted by: silo13

originally posted by: richapau
a reply to: silo13

Your premise that the memo caused the drop is stupid. The market was EXTREMELY over priced and was long overdue for a correction. The memo had NOTHING to do with it.

Can you prove that?

And the 'stupid' was uncalled for unless you're afraid someone else's opinion other than yours might be valid.

You have it backwards the claim is being made the memo caused a drop. As such proof of that is required. The sell-off started because of the Friday jobs report. On Friday, the Labor Department put out its monthly report on how many jobs were created in January in the United States and how fast wages are growing. Overall, it looked like good news. The economy added 200,000 jobs, and wages grew by 2.9 percent, the most since 2009. But Wall Street looks at things differently than most people do. When companies pay workers more, it usually means lower profits for shareholders. So this caused sell offs of course as they moved money to bonds.

As far as proof the jobs report caused it simple it was released 30 min later sell offs started.

The good jobs report was interpreted to mean interest rate hikes from Fed are likely due to inflationary pressures, and thus the greater selling forces reaction in stocks

posted on Feb, 7 2018 @ 02:56 AM
I been following ETFs that match the VIX.

Something about them reminds me of that legend of Nathan Rothschild making a killing on British consols after the battle of Waterloo.

But don't mind me. I'm just a delusional speculator.

posted on Feb, 7 2018 @ 03:59 AM
a reply to: CainHarmbank

Honestly, the memo makes the most sense.

Markets are forward looking.
What causes markets to crash? FEAR.

Markets opened down 0.5% on the jobs news. Hardly notable. (News was out pre-market)
From market open to 12:00 (memo drop), the market was down another 0.4% for a total of just under 1% loss.

Then the memo dropped. From memo drop to market close, it lost another 1.1%.
Monday it dropped 4%+, today it rebounded (Dem memo was approved for release too, as expected).

Inflation numbers aren't due out until next week, and last time they came out it was a paltry 2.1% (fed targets 3%).

Treasuries are typically at their highest in february or march, so that's not new either.

Valuations aren't actually all that high S&P500 stocks are at 19.4 P/E (10 year average is 15.5, but that's brought down by the 08-09 crash). Emerging markets are actually below their 20 year average.

Political turmoil has caused market dives in the past and the memo is pretty damning. Further, remember the reports were that Trump was going to fire mueller and rosenstein when the memo was released? That would have caused quite an uproar from the media and the US left.
edit on 7-2-2018 by Dfairlite because: (no reason given)

posted on Feb, 7 2018 @ 05:30 AM
Stocks going back up...
Somebody missed the call and cost the thread...

posted on Feb, 7 2018 @ 06:18 AM

originally posted by: Dfairlite
No it doesnt. Literally all of that is wrong. It has to do with one thing, fear of instability.

I'll trust the opinion of the people actually who study this at Bloomberg, The Wall Street Journal, CNBC, Forbes, etc. They all spoke of the impact that low rates, bond yields and other factors that I cited would have on the market for some time. It manifested last week and this week.

posted on Feb, 7 2018 @ 01:40 PM
a reply to: Dfairlite

Ok let me see if I get what you're saying... I don't really follow politics closely...

Because somebody wrote a memo that alleges the FBI has an anti-Trump bias, the stock market took a, so far, 2 day nose dive.

Is that about the jist of your argument?

posted on Feb, 7 2018 @ 02:10 PM
Seems it would also be good to clarify this point that some commenters here have spoken to.

The dollar tends to get stronger when stocks get weaker

The dollar tends to get weaker when stocks get stronger

Its not a perfect correlation but appears to be a pretty noticeable tendency over long periods

posted on Feb, 7 2018 @ 03:31 PM
Trump says used to be stocks rose in reaction to good news (like jobs report).
Now they fall.
Big mistake.
Then he says. FBI BOMBSHELL.
Oh the feeling is palpable.

top topics

<< 3  4  5   >>

log in