Stocks plummet after hot inflation report

[IsailedawayfromFR]

MAGA doesn't care that White Collar employees or service employees can lose their jobs.

Guess you are in the corner of being satisfied with all the unproductive and unnecessary government employees who do not even show up for work.

[IsailedawayfromFR]

Its become scary how many regular people are viewing a bull market as a entitlement.  That 30-50% correction is inevitable, and I truly pray that there are little or no folk out there who are putting their ability to pay their bills by underwriting them with equities.   

Gravity is inevitable.  And I hope not only are all prepared, but are ready to jump back in as investment opportunities.  The best time to invest is when the masses are heading toward  the exits.

Well said.

To invest what one needs to live on is not smart, and can be very destructive.

And I am ready to jump feet first once again, and even did a bit on a particularly inviting stock that had a huge haircut today

[IsailedawayfromFR]

The price of gold is a bad omen for King Dollar.

Tariffs are only effective as a bargaining chip if there are domestic alternatives to imports.

For many industries and markets, so few domestic alternatives exist in the US, it will lead to inflation, supply disruption, and export disruption as other nations retaliate.

Too much supply has moved overseas for domestic alternatives to make up the slack from tarriffed imports.

That is a short term issue, and tariffs by nature are longer term as their inevitable result is the incentive to move jobs and companies from foreign to domestic.

Tariffs also inevitably force reconciliation between countries that had disproportionate tariffs, which will lower import costs as well.

[Kamaji]

That is a short term issue, and tariffs by nature are longer term as their inevitable result is the incentive to move jobs and companies from foreign to domestic.

Tariffs also inevitably force reconciliation between countries that had disproportionate tariffs, which will lower import costs as well.

The incentive from tariffs is for domestic producers to raise their prices.  Tariffs are a really stupid idea.

[catfish1957]

Going to be a rough day...

VIX is now @ 41...  nearing panic territory

Premarket numbers-

DJIA down 2.9%
NASDAQ down 3.1%

Gold- $3118/oz

Oil- $62/bbl...   Was $71 a few days ago;

Numbers I am really going to watch today are US consumables equities.  IMO, at least early on this will let me know if this tariff driven bear-ish market has legs.   Or just another speculative knee jerk  flash in the pan. 

[catfish1957]

From my trusty nearby calculator, we are still a ways from Bear Market territory.  Based on recent highs, the DJIA will need to reach 34,300, before being officially Bearville. 

Even with a 20% correction, I still see that number as a market still way oversold.  If it reaches the 20,000's, I might do a little bargain shopping

[Free Vulcan]

Even from the Oct '23 dip, the market was up at it's high nearly 50%. That is a ridiculous number for a mature economy like ours. What most of that was, was monetary effect from unrestrained currency printing.

What you see now is only a 16% retracement from the highs, and actually a pretty mild bear market in relation to the Oct '22 bottom.

[IsailedawayfromFR]

The incentive from tariffs is for domestic producers to raise their prices.  Tariffs are a really stupid idea.

Tariffs do not cause inflation.  Excess money supply does.
I repeat: tariffs are a long term solution which have great benefit to the economy, and one cannot look at simply short-term events.

You might benefit with reading this article, but I doubt you will.

April 4, 2025
Trump’s Tariffs Will Not Cause Inflation
By Spencer P. Morrison
https://www.americanthinker.com/articles/2025/04/trump_s_tariffs_will_not_cause_inflation.html

[Kamaji]

Tariffs do not cause inflation.  Excess money supply does,
You might benefit with reading this article, but I doubt you will.

April 4, 2025
Trump’s Tariffs Will Not Cause Inflation
By Spencer P. Morrison
https://www.americanthinker.com/articles/2025/04/trump_s_tariffs_will_not_cause_inflation.html

Uh huh. Bullshit.  Tariffs on foreign goods raise the price of goods that are competing against domestic goods, giving the domestic producer the incentive to raise prices to just below the tariff-adjusted price of the competing foreign goods on a cost-free basis.

Simple economics 101.  Occam’s razor is usually correct.

If that were not the case, then why is Trump already threatening US automakers if they raise prices.

[Free Vulcan]

Uh huh. Bullshit.  Tariffs on foreign goods raise the price of goods that are competing against domestic goods, giving the domestic producer the incentive to raise prices to just below the tariff-adjusted price of the competing foreign goods on a cost-free basis.

Simple economics 101.  Occam’s razor is usually correct.

If that were not the case, then why is Trump already threatening US automakers if they raise prices.

The world is more complex than economics 101 and Occam's Razor. The article is spot on.

[LMAO]

https://www.reuters.com/world/us/trump-administration-is-months-away-direct-payments-farmers-rollins-says-2025-04-03/

[catfish1957]

The world is more complex than economics 101 and Occam's Razor. The article is spot on.

He fails to realize that in Trump world there is an ocean of difference between scorched earth tariffs and negotiated agreements that work best for both parties.  Those who cooperate, and take part in equitable trade will have an advantage over those who throw tantrums.

And to every detractor.....   while making your statements at least acknowledge that the numbers that Trump cited are at lower or at least the same as the corresponding nation.  And explain why this excessive disparity needs to continue.  Then I'll listen.

[IsailedawayfromFR]

Uh huh. Bullshit.  Tariffs on foreign goods raise the price of goods that are competing against domestic goods, giving the domestic producer the incentive to raise prices to just below the tariff-adjusted price of the competing foreign goods on a cost-free basis.

Simple economics 101.  Occam’s razor is usually correct.

If that were not the case, then why is Trump already threatening US automakers if they raise prices.

You do not know economics from the simplicity you exhibit.

You do not even ackowledge most foreign goods are subsidized and dumped upon us so the price remains below its true cost.

Best for you to find another topic.

Oh, BTW, you must not have read that Ford is lowering prices for the general public down to employee pricing levels for most models.

[kevindavis007]

Stocks in the U.S. opened sharply lower on Friday, extending a slide from the previous trading session triggered by President Trump's announcement of sweeping new tariffs on U.S. imports earlier this week.

The S&P 500 fell 144 points, or 2.5%, to 5,252 as of 9:34 a.m. EST. The Dow Jones Industrial Average tumbled 1,006 points, or 2.5%, and the Nasdaq Composite slid 3.1%.

The indexes' free-fall Thursday was their biggest one-day drop since 2020, with more than $2 trillion in investor wealth erased from the S&P 500. The S&P 500 and Dow each sank more than 4% yesterday, while the tech-heavy Nasdaq plunged nearly 6%.


Read More: https://www.msn.com/en-us/money/markets/dow-jones-drops-another-1000-points-as-stocks-extend-slide/ar-AA1CiIZO?ocid=BingNewsSerp

[catfish1957]

Earlier I mentioned that the benchmark tell  of the nature of this correction is in the large us consumer markets...

Here's the biggest player from each direct consumable subgroup in that sector at this exact moment.

Pepsi- Down 0.75%
Procter and Gamble- Down 2.03%
Nestle- Down 3.13%
Unilever- Down 3.11%

Overall DOW is down 3.63%. So on a slight basis, these are overpeforming the broad market. So I am not convinced yet that this is a fundamental correction vs. old fashion day trading and broker speculative play.

Situation is evolving though.

[IsailedawayfromFR]

Earlier I mentioned that the benchmark tell  of the nature of this correction is in the large us consumer markets...

Here's the biggest player from each direct consumable subgroup in that sector at this exact moment.

Pepsi- Down 0.75%
Procter and Gamble- Down 2.03%
Nestle- Down 3.13%
Unilever- Down 3.11%

Overall DOW is down 3.63%. So on a slight basis, these are overpeforming the broad market. So I am not convinced yet that this is a fundamental correction vs. old fashion day trading and broker speculative play.

Situation is evolving though.

Translation:  You are not yet ready to jump back into things.

[cato potatoe]

This is because of one country’s retaliation.  What happens when the others raise their tariffs?  I sure hope Donald has not manufactured a depression on purpose, or has an off ramp in mind.

[roamer_1]

Tariffs do not cause inflation.  Excess money supply does.
I repeat: tariffs are a long term solution which have great benefit to the economy, and one cannot look at simply short-term events.

No... Tariffs protect poor business practices, if anything. There is room for tariffs as a tool.

But none of that matters because even under the rubric of your provided article, Tumpy is blowing shit up - Because his tariffs ARE going to be short lived. And ALL y'all know it.

Dumbassed and pointless bullcrap that will be costly.

[catfish1957]

Translation:  You are not yet ready to jump back into things.

Definitely....   I have a few I have my eye on that if they correct another 5-8%. But I am not holding my breath

The grail for me is finding those bigger companies with long term demand and success, that will slot out at a 5% Divy, and under a 25 P/E

How about you?

[catfish1957]

No... Tariffs protect poor business practices, if anything. There is room for tariffs as a tool.

But none of that matters because even under the rubric of your provided article, Tumpy is blowing shit up - Because his tariffs ARE going to be short lived. And ALL y'all know it.

Dumbassed and pointless bullcrap that will be costly.

And that point is based on him losing Congress in '27?  Equitable trade parameters is bullcrap?  We sure didn't see any effort with Biden, or any of the dims.  In fact they made it worse.  Personally, while in quicksand, the better strategy is to get out.

[roamer_1]

And that point is based on him losing Congress in '27?  Equitable trade parameters is bullcrap?  We sure didn't see any effort with Biden, or any of the dims.  In fact they made it worse.  Personally, while in quicksand, the better strategy is to get out.

Maybe you don't know this... Getting out of quicksand requires slow and deliberate movements.
Flailing about causes one to sink deeper.

[Weird Tolkienish Figure]

GOP was associated with a good economy according to polls taken in 2024... I guess that was then and this is now.

[Weird Tolkienish Figure]

No... Tariffs protect poor business practices, if anything. There is room for tariffs as a tool.

But none of that matters because even under the rubric of your provided article, Tumpy is blowing shit up - Because his tariffs ARE going to be short lived. And ALL y'all know it.

Dumbassed and pointless bullcrap that will be costly.

Best use of tariffs is as a punitive or truly reciprocal manner, to get other nations to lower their trade barriers, and as the US is the prime importing nation our power with them is great, but I feel Trump's behavior on this issue and has turned much of the world, and public against them. I would have rather he slapped them on China and left it at that, by dragging Canada and others into it he has completely fumbled this issue.

[catfish1957]

Best news of the day?  Benchmark crude is almost down to $60/bbl.  Well not exactly good news for me, but......

Wonder if the Kremlin is keeping Putin out of  multi-story buildings.  The last I looked the break even point for Russian crude is $50. 

[Weird Tolkienish Figure]

Best news of the day?  Benchmark crude is almost down to $60/bbl.  Well not exactly good news for me, but......

Wonder if the Kremlin is keeping Putin out of  multi-story buildings.  The last I looked the break even point for Russian crude is $50.

Yes was able to fill my tank for less than $30 the other day, haven't remembered the last time I was able to do that.