Thursday, January 03, 2019

Apple report alone stokes more market volatility, and then there is the shutdown



Business Insider, for whom I recently signed up for the premium subscription, reports that a major Wall Street credit hedge fund, Marathon Asset Management, has hired a “veteran distressed debt trader”. That means that many of these funds expect a recession, according to a story by Dakin Campbell. 

Apple CEO Tim Cook reported lower earnings than expected his behemoth company just after the market close Jan. 2, and got up early in California this morning. Much of the problem seems to loop back to the trade war with China; but Apple seems to have bet its fortune and much of the entire stock market on our relationship with a Communist, post-Marxist country (in the middle of implementing a social credit score on all citizens). CNN's story is here.  "Your" retirement is tied to Communism and Xi Jingping.
   
 Maybe he could run for president in 2020 as he can move markets.  (OK, we’ll lowkey that “no place on our platform” speech.)  That was the reason for the initial drop, rather than the intransigence over the border issue between Trump and Congress. But it’s hard to believe that a deal wouldn’t help the markets. This Yahoo! report suggests that stock market pricing already has a 2019 recession start factored in. 


Both parties should talk to ranchers and businesses in the southern border states and find out what kind of security is most cost effective.  Most of these businesses are in Trump’s base. But it’s probably not a wall everywhere.

No comments: