Dow tumbles 800 points in biggest one day fall of year on global economic growth slowdown

in #informationwar5 years ago

The Dow Jones Industrial Average fell 800 points on Wednesday, its biggest one-day fall this year, after data showed world economic growth slowing further, undermined by President Trump’s trade protectionism, leading the U.S. Treasury yield curve to invert and flash a recession warning signal.

All 30 stocks in Dow Jones Industrial Average closed lower for only the third time this year, and all eleven sector indexes in the S&P 500 ended lower, reversing gains notched Tuesday when the Trump administration said it would delay the imposition of some new tariffs on Chinese goods.

Biggest one day loss for the Dow this year so far. I say so far because September has historically been one of the worst months on record for stocks so it's possible we might see bigger losses in the near future. Trump delayed tariffs on China but I suspect that could change if trade negations fail. All this uncertain with USA-China trade relations put pressure on the markets and keep them jittery.

Yield curve is signaling recession is in the US's near future. The timing looks to be in the next year or so and right around the 2020 election which would be perfect for democrats to use against Trump. Maybe this is part of Trumps plan to keep interest rates down so the government can afford Trump's infrastructure plan and keep the economy kicking along. Who knows but people should be preparing for a recession like keeping some cash on hand out of the banks and have some investments in alternatives to government fiat like gold or cryptocurrencies.

Gold has been super strong the past few months and it sitting at over $1,500 and silver is at $17.45. I'm guessing we'll see record prices in gold and maybe silver if the economy falls into recession. Bitcoin is down today but I'm guess that would be at record prices too in a recession as people look to alternative assets to protect their wealth.

Source: https://www.marketwatch.com/story/dow-futures-down-over-300-points-on-global-growth-concerns-yield-curve-inversion-2019-08-14?mod=mw_latestnews&mod=mw_theo_homepage

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