Not the Time to Quit Paying Attention

 

by Pa Rock

Retiree

Donald Trump unveiled his massive tariffs on foreign imports Wednesday after the US stock markets had closed for the day, and on Thursday the markets suffered their worst day of trading in five years with the Dow closing down nearly 1,700 points, or almost 4%, the S&P off nearly 5%, and the Nasdaq down six percent.   Yesterday was essentially a rout, and stock futures for today indicate that a second day of market upheaval is likely.

From a historical perspective, this would probably be a good time for investors to begin sniffing around for bargains because after the market adjusts, it generally begins to climb again.   But given today's volatility and this government's general lack of predictability, this adjustment might not be normal.   The stock market "crash" of 1929 was a prolonged affair that ultimately took years of government intervention in order to get it and the national economy back on their feet.

There may be bargains to be had this morning, but buyer beware.

I am dug into the stock market as a mainstay of my retirement, and right now I will sit in that hole and hope for the best.  The earth could rise again leaving me in the full sunlight of satisfactory interest, stock splits, and regular dividends, or the hole could fill with water and I would drown.  This morning it's raining - I think that's a sign.  Regardless, I have set my shovel aside and have quit digging, at least for the time being.

What our nation needs is an actual stable genius, and what we have is an angry old man with a vendetta.  We could be on the brink of the big one, like 1929, without a competent leader to get us through it.  Stay focused and alert, America - this is not the time to quit paying attention - but it may be the right time to stop digging, at least until the rain lets up.