Stock Market Down. How is This a Good Thing?

originally posted by: TheRedneck
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I said in 2016 that a Trump Presidency would be the best thing to ever happen to the US and the most painful thing to happen to the US at the same time. Looks like I may have been right.

Excellent post! Wasn't sure what to expect when I clicked on it, but... just, excellent.

Did you post your thoughts here in 2016? I'd love to see what you had to say then about a Trump Presidency.

originally posted by: DBCowboy
a reply to: TheRedneck
I see it as evidence of a one-world government, globalization of economy, without the admission from our political leadership.

How, exactly, is having 95+% of our supply chains based in China - one country - 'globalisation'?

No, it is just stupid, caused by anti-American laws making it easy for large companies to outsource everything to slave labor economies.

Bring it home.

And pass some federal laws governing what could be considered 'strategically critical' industries, and require them to source and manufacture locally.

only good thing ive gotten out of the stock market chaos is the price of gold shot up the other day to a 7 year high and i made a killing selling some . but for me that is probably anecdotal ,most of the few stocks i have did ok but they are in defense so not a volatile in this kind of thing

a reply to: PublicOpinion

Right. Let's talk about this stock market without talking about the stock market's addiction to QE. Furthermore, let's point fingers and blame the very people that made cheap labor happening so that our oh-so benevolent corporations like Apple (and their shareholders) literally took off to the stars! That's excellent mud-pit material, WTF is happening?

What is happening is an attempt to debate, in hopes of understanding what is going on. That's what ATS is for; the Mud Pit is for slinging blame and accusations. I happen to not be interested in such tactics right now. Feel free to start a thread there on the subject if you wish to engage in such behavior.

I would also like to know what "QE" stands for.

Just saying, this is an international board and all that.

Yes, it is, and this situation extends, by definition, into international relations. I am from Alabama; my viewpoint will be based on my place on the globe. So will yours. If you are suggesting that the American perspective is irrelevant to other countries, I would appreciate it if you would show something akin to consistency and apply that same viewpoint to other subjects that are completely within the realm of US politics.

Now, do you have anything appropriate to add here, or shall I look forward to your Mud Pit thread?

TheRedneck

a reply to: TheRedneck

Forget rare earth minerals

www.washingtonpost.com...

Ninety-eight percent of shoes are manufactured abroad, with nearly three-quarters of those imports coming from China, according to the American Apparel & Footwear Association, making footwear one of the most heavily imported products

98%!!!!!!!!
How did we let that happen?

a reply to: AugustusMasonicus

While yes, other countries have some reserves and China's main advantage is in production, it still has the bulk of reserves, approximately twice that of any other country. Investing News gives a pretty good breakdown of the top 7 countries by reserves:

• China: 44,000,000 metric tons
  
• Brazil: 22,000,000 metric tons
  
• Vietnam: 22,000,000 metric tons
  
• Russia: 12,000,000 metric tons
  
• India: 6,900,00 metric tons
  
• Australia: 3,400,000 metric tons
  
• USA: 1,200,000 metric tons

I purposely typed out the numbers to point out the difference. The planet has about 120 million metric tons of known reserves, so China holds about 36.7% of the planetary known reserves. That's twice the next highest country.

The other problem is that China is willing to refine the oxides; many other countries are not. Without refinement, the minerals are useless, and refining requires radiation and acid baths... not something the ecologists in this country would likely stand still for, regardless of the importance.

Finally, take another look at that list... if we include Russia and China, that's 55% of the planetary reserves. We are not exactly on good terms with Russia right now, so even if they were to strengthen their infrastructure, we would likely have a hard time getting our hands on their rare earths.

Cut any supply by 55% and the prices will explode... and we need those high tech toys. Our military might relies on it.

TheRedneck

a reply to: tanstaafl

Er, I think I did, at least once. I would shudder at the thought of digging back through that many posts, though. Feel free to look.

TheRedneck

a reply to: TheRedneck

QE stands for Quantitative Easing. Basically, fancy talk for govt buying bonds to drive down interest rates. This is suppose to increase liquidity, lower cost of capital, and encourage investment.

a reply to: RalagaNarHallas

On that note, if I were in the market I would be buying up pharmaceutical stock as hard as I could go. Someone is going to find a treatment, and they'll make a freakin' fortune selling high-priced drugs to scared silly people.

Full disclosure: I am not a stock market analyst, nor do I play one on TV.


TheRedneck

a reply to: Edumakated

Thank you!

TheRedneck

originally posted by: TheRedneck
a reply to: RalagaNarHallas

On that note, if I were in the market I would be buying up pharmaceutical stock as hard as I could go. Someone is going to find a treatment, and they'll make a freakin' fortune selling high-priced drugs to scared silly people.

Full disclosure: I am not a stock market analyst, nor do I play one on TV.

TheRedneck

THIS is a good one.
finance.yahoo.com...
American company developed a vaccine in trials soon.

This is bad for industry, as a hobbyist, I buy German, French or American caps, hard to trust the Chinese on high end capacitors..lots of counterfeit, they even counterfeit vacuum tubes..

a reply to: TheRedneck

Regardless, it's not the issue people make it out to be, California's Mountain Pass Mine, once the world's prime supplier, has been back up and running since 2018, processing will resume this year. China is not as relevant as people think.

originally posted by: TheRedneck
a reply to: tanstaafl

Er, I think I did, at least once. I would shudder at the thought of digging back through that many posts, though. Feel free to look.

No worries. I meant if you had started an entire Thread on it. If it was just random comments on other threads...

originally posted by: AugustusMasonicus
a reply to: TheRedneck
Regardless, it's not the issue people make it out to be, California's Mountain Pass Mine, once the world's prime supplier, has been back up and running since 2018, processing will resume this year. China is not as relevant as people think.

And this situation will only increase demand so fast for businesses like this - well, lets just say it will be good for business, and an opportunity for some to get a huge portion of the market really fast.

a reply to: TheRedneck

It's the common shorthand for Quantitative Easing. But you're aware about it's impact on the stock market?
From our beloved category "Exactly last year's news":

So what to do?

Simply, we have to call the future of QT. When does it die? We also have to wonder if QE will be back.

How Quantitative Tightening Affects The Market

And, judging by the constant presence of our usual scarecrows, I'd say QE will be back stronk!

“So then we can agree on synchronized, or even better, coordinated measures to protect the world economy from a more serious shock,” Georgieva told delegates. “Can we do it? Yes. Are we going to do it? I actually think that we will.”

IMF chief hopes for global policy response to mitigate coronavirus impact

Like clockwork.

Let me ask you this: how is the stock market a good thing when it's not a free market anymore? I don't get it. But China? That's the splinter in your eye? Distractions, that's what I see. And you seem to need a third splinter in order to find out which one is worse. lol.

Well, I for one am eyeing AMD's stock to come down real low. Right now its looking like supply of their chips will be hindered by CV. I wish I had bought in when it was $1 and some change a share, and peaked a couple weeks ago at almost $60.

a reply to: TheRedneck

FDR said something similar, quote: "The only thing we have to fear is fear, itself."
He said it at his first inauguration... over the 12 years of his presidencies that followed we saw another 8 years of the Great Depression, the passage of the New Deal (which I'm fairly sure you agree with me on when I say 'not good, not good'), an attempt to destroy individualism in the United States, World War 2, The Japanese attack on Pearl Harbor, 420,000 dead Americans thanks to WWII, the foundation for destroying the traditional American home by forcing women into the workplace, and the formation of the Military Industrial Complex. History tells us many things, one of which is to be very cautious when those in power tell people not to worry, because it usually means reality is far, far more worrying and deserving of fear than they want you to even dream it is.

a reply to: AugustusMasonicus

I noticed that US processing of rare earths were up considerably from 2016, but given the forum I am in I decided not to mention it. That may be our saving grace, although the US doesn't have known reserves enough to last long.

I will point out that India has some decent reserves, over 5 times what we have. That may have been the impetus behind Trump's recent visit.

TheRedneck

a reply to: PublicOpinion

Yeah, I know what Quantitative Easing is... what confused me was that it has nothing to do with what I said in the OP.

My point is that the lower stock market is in anticipation of shortages in Chinese goods, so the result might well be the removal of businesses from China to western countries, including the US. That would place the market on a stronger footing for growth once it recovers from the present dip.

There are several ways the decline can be slowed... quantitative policy, interest rate adjustments, and even just talking up the economy comes to mind. That's all fine, and I'm sure Trump will be working on it; that's his forte. China as well is already trying to recover any lost business by ordering workers back to work; that will reverse the trend if it succeeds. But will this reality check diversify international markets to strengthen both our global and local economy? That's why I started this thread.

TheRedneck