Thanks, Trump
When Momma passed, she left my brother and me some stock at the blue chip oil company my Daddy spent his life working for. They bought the stock little by little as the small family-owned oil company grew to a giant blue chip monster that went public and quit having Christmas parties for the employees kids and large company picnics at the beach and where the owner and his family knew almost every name of their employees.
Momma and Daddy sent their kids to college on the dividends the stock paid. Momma hoped that her beautiful new great grandchildren could go to college on her stocks.
They closed the markets this morning. When Momma passed it was worth $82 a share. This morning it was worth $15. Thanks, Trump. Your erratic behavior and the fact that no one can trust a word you say caused the markets to tank.
The only comfort I can take is that you hurt your rich friends a lot more than you hurt me. And that Momma hated you. I am very certain that she’s already told Sweet Jesus about those babies at the border. So, heads up, Buddy.
Hang on to them. They’ll bounce back in November.
1How many things has Donnie* done that have left us wondering when the .01% would insist that his* cabinet 25 the 45? Again we ask: are we there yet?
2Oh Donnie*, do you know what your portfolio boy Jared and the Saudis have been doing of late? Vlad cannot be happy with you*.
https://www.wsj.com/articles/saudi-aramco-shares-fall-below-ipo-price-for-first-time-11583663747
3Agree, do hold the stock.
Factbox: A 7% plunge in the S&P just triggered a trading halt. Here’s how circuit breakers work.
Edit: (Reuters) – A plunge in U.S. markets on Monday triggered a 15-minute trading halt in stocks after the S&P 500 fell 7% shortly after the market opened.
HOW LIKELY IS A MAJOR STOCK MARKET CRASH?
On Oct. 19, 1987, the Dow Jones Industrial Average plunged 22.6%, after which the SEC mandated market-wide circuit breakers to ease big market declines.
To prevent another 1987-style crash, trading is paused for 15 minutes if the S&P 500 index falls more than 7% before 3:25 p.m. New York time.
If the decline continues after trading resumes, before 3:25 p.m., the market is paused again at down 13%. If the decline happens after 3:25 p.m., trading continues. But trading is suspended for the session if the decline reaches 20%.
Trading is suspended on both the Dow and the Nasdaq once the first circuit breaker is triggered on the S&P 500.
CAN THE ENTIRE MARKET BE SHUT DOWN?
On Oct. 29 and 30, 2012, markets were closed after Superstorm Sandy, the worst storm to hit New York City in nearly 75 years. The NYSE closed its trading floor due to unsafe conditions in lower Manhattan.
The exchange had planned to go fully electronic, but with much of Wall Street unprepared for the transition and running on skeleton staffing, traders and regulators felt uncomfortable with the idea and it was shelved. There has been extensive testing since then.
The markets were also closed following the Sept. 11, 2001, terror attacks until Sept. 17 to avoid panic selling.
https://www.reuters.com/article/us-health-coronavirus-usa-stocks-factbox/factbox-a-7-plunge-in-the-sp-just-triggered-a-trading-halt-heres-how-circuit-breakers-work-idUSKBN20W1Z0
4For grins, I thought I’d see what the market did during the Spanish Flu in 1918/1919. The answer is that it behaved as usual. All sides in The Great War were worried that news of the flu would hamper the war effort. So, no dissemination of information.
http://globalfinancialdata.com/the-spanish-flu-and-the-stock-market-the-pandemic-of-1919/
The article doesn’t say, but I’m guessing the secrecy contributed to the spread of the virus.
5Trump is hardly to blame for the decline in energy stocks. Leftists probably have had more to do with it by pushing (with some success) for non-fossil fuel energy. Fracking has had even more impact on old companies.
Exxon was at $90 at the end of 2011; now it’s half that.
I heard an analyst this morning suggest that continued market pain will drive the fracking companies over the edge (they were already contracting) and big companies like Exxon could swoop in and ‘buy oil in the ground for $10/bbl.’
6There’s always another story. There’s more than meets the eye.
W. H. Auden
The Corona Virus Scream
https://www.truthdig.com/cartoons/the-coronavirus-scream/
Repost: Coronavirus: nine reasons to be reassured
Yes, Covid-19 is serious, but context is key and the world is well placed to deal with it
https://www.theguardian.com/world/2020/mar/07/coronavirus-reasons-to-be-reassured
7I’ve been in tax exempt bonds for several years now, and the per share price over the last 9 months has gone up considerably. Good sign the Dow is in big trouble.
8The Saudis were going to try to hold the line on production but his majesty’s good friend Vlad wasn’t having it and upped Russian production. So the journalist murdering Saudis let the oil flow too – there goes the price. What great friends!
9Annnnnddddd, the DJIA closed down 2013 points.
How’s THAT for winning, Fat Donnie?
10Well, since the only thing tRump obviously gives a dam about is the stock market, lets see how this plays out. Does he have nervous breakdown? Or does he actually come down with COVID from exposure at Mar a Lago? Or both simultaneously. Taking bets now.
11Well, last week, and for months, I told y’all this was coming [oil nearing $30, Dow off 2000 in one day- a record]; my timing was a little early though.
.
Ms B, hopefully you’re more market diversified [*] than just the energy [o&g] sector, which was down 20-25% yesterday. Maybe I’m too subtle, but peak petro is past, it is a now dying industry; for many factors and reasons [yay EVs].
The US fracking sector has been in deep trouble for years, with huge unpayable debt [even when it was profitable] that is sucking many banks down too. Texas and the other shale play areas are about to see massive unemployment as petro workers [not just frackers] are laid off. [fracking is huge in TX, I’m in the middle of the Eagle Ford Shale, have written about it many times, it has been an unbelievable boom time ]
WTI crude oil was ~$65 at the beginning of January, now two months later, in early March, it’s –half– that, it traded as low as $27 and closed at ~$31 yesterday.
Projections and opinions are that it will be in the ‘teens to 20s for the next year. The Saudis and Russkies just did an “OK Corral’ and Putin won [Russia can do OK with $20/bbl oil], nobody else can].
This, the coronavirus effects, and the stupidity of the Rethugs will likely have the US, and the rest of the world, in a worse fix than the ‘Great Cheney/Bush Recession’ of 2008-2010.
Probably too late for equities, there’ll be a few “dead cat bounces”, but the Dow is headed below 15,000 as our economy near-collapses.
Asian and European markets are up ~1.5% today so far, oil is rising to ~$33.50/bbl, so there’s a dead cat bouncing…
.
12*– [I once had a bunch of vested stock trapped in company stock, lost $56K in ~four hours. I later bailed in a ‘dead cat bounce’ and did ok; that stock went from near $200 at peak to 75 cents at bottom, many co-workers were slaughtered. My holding was both bought and ‘matching’, I liquidated it all ~$125 and made good money on the way down; ‘loyalist’ coworkers got killed hoping and holding on.]
PS– The wholesale price of gasoline had fallen to ~$1.12/gal yesterday, moving towards $1.18 today; it was in the $1.40/50 range last week or so.
So, as predicted, later this week will be a good time to fill your tank [I try to ‘hedge’ my gas buying as much as possible by following crude&refined prices]; as [locally here] pump prices should be $1.50-1.80/gal.
13With respect – unfortunately , Putin got Diaper elected to bankrupt America . It`s all going to plan .
14