Another Day of Losing ... Big Losing
Markets move based on expected future reality ... Trump has been stealing your retirement every day since taking office
Today’s market action is just another day of losing for you and me caused by the self inflicted wounds done by our “Grifter in Chief.” This is your retirement income he is killing, folks, not his. Remember that.
All of his bluster about tariffs being such a “beautiful word” is now hitting the street, and nobody likes it but him. Canada doesn’t like it and has hit back with major tariffs of their own, as have Mexico and China. Now he is talking about adding tariffs (an idea that has already shown itself to be disastrous) to other countries such as Europe!
You know what they say about a definition of insanity: Doing the same thing that didn’t work before and expecting a different result. If he is not insane then why would he be acting in such a hurtful way to the country and to us?
If you don’t believe me, believe the market and your own eyes as you check out this chart of the S&P 500 I took just this morning. For those of you who don’t know, the S&P 500 represents the 500 largest companies in the USA and it is considered a barometer for the overall stock market health. It is pretty clear that under Biden we were in a solid uptrend which, in only a few weeks, has been converted into a major downtrend which many believe will turn into a recession.
A particularly worrying note is that the S&P dropped below its 200 day simple moving average (see the circle on the right) today. This means that the recent performance is so bad that it is weaker than the average determined by the prior 200 days (basically a trading year). In all of the ups and downs over the prior year, it never broke the 200 day average, until today. Even in August, when it dropped a lot, it didn’t even come close to the 200 day average.
“Nothing good happens under the 200 day moving average.” Dave Keller
For the first time in a while, economists and analysts are talking about the real possibility of a recession when in November everyone agreed that a recession would likely not happen. Years of successful recovery from high inflation flushed in a few weeks under Trump. Instead of 2025 being a year of prosperity which is was on course to be, it is now looking like we will be lucky to break even.
Is this really what you voted for?
THIS IS IMPORTANT - Please think about it for a moment
Trump is creating massive self-inflicted economic chaos negatively impacting your and my lives, upending the lives of thousands of civil servants and their families, jeopardizing the lives of Ukrainian families and soldiers, alienating allies who shed blood with our parents in past wars, and buddying up to Putin who attacked Ukraine.
This is not OK with me and many of the folks that I know.
Are you REALLY ok with it?