Image default
Trending

Watch Out for Falling Stocks

#286280749

Stocks take Tuesday tumble

First reported by Wsj.com

Summary:

  • Amidst worries of an economic slowdown and confusion over the U.S.-China trade agreement, stocks took a nosedive on Tuesday as the Dow Jones industrial Average fell nearly 800 points.
  • The plummet, representing a 3.1 percent decline, marks the stock market’s worst day since October 10th.
  • Analysts say stocks began their downward spiral just after Doubleline Capital CEO Jeffrey Gundlach was quoted as saying the economy “is poised to weaken.”

Questions:

  • Do you think the stock market is too reactionary to little things?
  • Would a simple comment like the one made by Gundlach cause you to offload your stocks?

Article:

The Dow Jones Industrial Average fell by almost 800 points and bond yields plummeted as investors’ doubts about the US-China trade truce reinvigorated anxieties about economic growth rates.

Investors have largely withdrawn from stocks and industrial stalwarts, including Boeing and Caterpillar, have suffered severe losses. Apple and other technology companies have also slipped, bringing the Nasdaq composite back more than 10% below its level in August.

The losses were fuelled by the lowering enthusiasm for the 90-day cease-fire tariff over the weekend, several investors said, raising concerns that the ongoing disagreement between the two largest economies in the world could unravel economic growth in the US and put additional pressure on Europe and Asia, which are already struggling.

According to Matt Peden, Chief Investment Officer of GuideStone Capital Management, Money Managers received few panicked phone calls from investors, although more are afraid of risk due to fears of economic slowdown or worse — a recession.

More investors—including those at GuideStone, which manages $13.2 billion, and other money management firms—park their equity and transfer that money into bonds or even cash in order to better preserve its capital.

Read More: https://www.wsj.com/articles/dow-tumbles-nearly-800-points-as-trade-jitters-return-1543959007

Videos:

DOW Plunges 800 Points On Fears of Slowing Economic Growth, Banks Lead The Decline

Dow drops almost 800 points, financial planner explains why

Tweets:

Related posts