Wall Street rally fizzles as tech, Amazon falter

The market is in a recession. You would think with the ongoing retail apocalypse Amazon would be crushing it but it's not. You know why? No one has any money to spend. I know because I work in construction and we basically gave up on residential construction and I work in a 3 state radius due to my geographic location.

Reuters

(Reuters) - Declines in big tech and Internet stocks such as Amazon pushed the Nasdaq lower on Monday, while strength in financial shares mitigated declines for the S&P 500 as investors grappled with a recent spike in market volatility.

Major tech and growth stocks, such as Amazon (AMZN.O), Google parent Alphabet (GOOGL.O) and Netflix (NFLX.O), posted sharp declines. The S&P 500 technology sector .SPLRCT fell 1.2 percent.

My prediction is that we are already entering a recession or are in one. The stock buybacks and individual debt rates have been astronomical this year. Flat out plane and simple the majority of American's can no longer afford personal luxuries. Most of you are seeing it all around you buy ignoring the reality.

Retail apocalypse

2018 has been a tough year for some traditional retailers. After shutting down more than 5,000 stores in 2017, there have been nearly 5,000 store closures announced so far this year.

But if Amazon is picking up all of their business why the sharp decline in stock? Is it all the .25 interest rate hikes or something else?

Consumer debt to reach 4 trillion by end of 2018

Americans owe more than 26 percent of their annual income to this debt. That's up from 22 percent in 2010. It's also higher than debt levels during the mid-2000s when credit availability soared.

It's really simple, people do not make enough money to cover the basics. The Fed's easy money lending policy has driven up the cost of goods and the American mentality of only paying highly skilled employee's enough money to live on is starting to really hit the market. Oh, your retirement, it's not safe.

Zillow, Seattle

Here's a look at the Seattle housing market, one of the hottest markets over the last ten years. Look at the increase in inventory but here is what you really need to look at. Click on a bunch of the red dot's and look at how many of the homes are cutting prices.

Redfin CEO warns about weak housing market

Redfin CEO Glenn Kelman has been known for making some strong statements about the housing market, and last week he issued his latest proclamation, warning of a slowdown that is beginning to develop across the country, even more so in expensive markets like Seattle and San Francisco.

Yeah we know, housing cost are way out of control we get it.

Residential construction new home building very slow

September housing starts were weak, continuing their trend. They are one facet of secular stagnation, best seen as annual housing starts per 1000 people. After 7 years of economic expansion, they remain less than half of the previous peak (Jan 2006), and two-thirds of the average during the previous two expansions. They rose to the 1963-2007 lows - and stalled.

Wage growth is being wiped out by inflation
Workers pay rate lowest since 2008
2.9% Wage growth is 1% After Inflation

The low to no wage growth is the main factor behind the increase in spending and slowdown in construction spending.

Wage #'s

The Middle – 50%
Here's another number that may surprise you – to be in the top half (50%) of all earners you need to earn more than $29,999.99 a year. The number of people earning less than $30,000 accounts for 49.33% of the population.

Now, I make a bit more than that however I have made 15 an hour before and it's not a lot of money. It means you can't do anything other than pay your bills. This is 50% of the population.

Now this isn't to say everything is all bad because it's gotten a lot better in the last 2-3 years however it's not good yet. It's just gotten better from the position of worse. The amount of money people are making is going down. This number needs to make sense and it's dragging down the entire economy. I can't tell if this is being done on purpose or not but many of the jobs now paying $15 or less were once upon a time well paying jobs or jobs that paid enough money to have a family on such as warehousing, driving a forklift and other manual labor jobs such as this.

I can’t help but wonder if the tech industry did this on purpose . They are almost all diehard liberal organizations.

It will be interesting to see their adjustments after the midterm .

a reply to: Fallingdown

did what on purpose what are you talking about?

a reply to: toysforadults

It’s really a shame that most people are so blinded by politics they refuse to see this coming. A lot of people are in for a rude awakening.

originally posted by: toysforadults
a reply to: Fallingdown

did what on purpose what are you talking about?

Sabotaged themselves by mind controlling people into not buying stuff.

a reply to: toysforadults

US Equities will likely continue to bleed off - there was an over 800-point spread in the DOW today (up over 400 at one point, down about 500 at one point).

There's also a lot of issues globally right now (Italian debt, trade war, corporate debt).

Futures are in the red right now, too. Even gold & silver.

Those aside, it's worth noting that we're back in 24K territory for the Dow. All those mammoth gains went poof, and it wasn't over the course of months, either. I'm willing to bet we'll be in the 23k range by the end of the week if it keeps this pace up.

a reply to: toysforadults

Under reporting earnings which affects the stock market .

When the whole stock market is self over-exaggerated should we really pay all that much attention to it, we plebs that dont dabble in the thang?

a reply to: Fallingdown

more like no one is spending

a reply to: toysforadults

Good thread, thanks.

I also think we are seeing the beginning of it but it will get much, much worse than the one we had under Bush. Spending is out of control. The wealthy and the corporations are super happy and can move all that money they're saving off-shore, and the rest of us can suck it and wait for the next recession.

Many could see this coming last year with all the policy changes, but sadly, many others won't see it until next year, when it's a bit too late to do anything. Actually, it's already too late, who am I kidding.

a reply to: Mahogany

the Fed is in a bad spot they have to raise rates but they also shouldn't, I'm not saying it's going to crash but I'm pointing out that the rose colored glasses need to come off and people need to see it for what it is

originally posted by: Fallingdown
a reply to: toysforadults

Under reporting earnings which affects the stock market .

I'm sure the SEC would gloss right over that.

a reply to: CriticalStinker

I would have to see verifiable evidence to believe that. Bezos sells his stock by the billions.

originally posted by: underwerks
a reply to: toysforadults

It’s really a shame that most people are so blinded by politics they refuse to see this coming. A lot of people are in for a rude awakening.

Look at the first reply, a shot is taken at liberals for causing this mess.

a reply to: hopenotfeariswhatweneed

partisan BS no links, no in depth analysis no relevant information to back claims just bull# politics

I'm not surprised

I don't think there is a recession looming on the near horizon. Amazon is down because it was overvalued, as well as most tech stocks. I love Amazon and their stock but for craps sake it has never really been worth nearly a trillion dollars, never has been. It will be someday but that is several years in the future. No need to panic. People are pulling out their money partially because they fear a Democrat Congress would increase taxes and regulations and because much of the market is overpriced.

If the Republicans keep control of Congress watch it bounce right back.

So... Is now a good time to rack up debt, and have a home built? I'd be 300k in the hole but as far as I know the only fix for what QA has done will be inflation, and lots of it- leading to higher wages and higher costs... But effectively erasing a ton of debt.

a reply to: a325nt

depends on where you live

a reply to: toysforadults

I have seen occasional reports for years that the Stock market was ballooned way beyond where it should be, this certainly isn't a new problem.

The only question is does it pop sooner or later?