Dow Stumbles Into Negative Territory
Gold last traded at $1,274 an ounce. Silver at $16.30 an ounce.
NEWS SUMMARY: Precious metal prices remained steady despite a stronger dollar amid trade worries. U.S. stocks traded mixed with the DJIA on track for a 7-day losing streak.
Dow tumbles 300 points, wiping out gain for year -CNBC
"Stocks fell sharply on Tuesday after President Donald Trump's latest threat to China increased fears of an impending trade war between the world's largest economies. The Dow Jones industrial average fell 306 points, with Boeing, DowDuPont and Caterpillar as the worst-performing stocks in the index. The 30-stock index also erased all of its gains for the year....Trump asked the United States Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs, at a rate of 10 percent. If China 'refuses to change its practices' and insists on continuing with the new tariffs it recently declared, then the additional levies would be imposed on Beijing, Trump said Monday night. Soon after, the Chinese Commerce Ministry issued a response, stating that the latest threat of more tariffs violates previous negotiations and consensus reached between both the U.S. and China. 'The United States has initiated a trade war that violates market laws and is not in accordance with current global development trends,' the ministry said."
Gold: The Best Kept Secret on Wall Street -Craig R. Smith
"Gold remains the natural, constant standard of real money that it was in year 2000, and that it was 2000 years ago....Since 2000, the Dow 30 has increased by 109%, from $11,722 to $25,517 - on average, about 6% per year...Gold, by comparison, since 2000 has increased 400% -- from $257 to $1,300 today - an average of 22.2% per year....or about 3.7 times more than stocks....Advertisers try to sell us what sparkles and can be given a temporary shine, from stocks to mysterious digital currencies with no proven track record....All the natural gold ever mined or gathered as nuggets would fit into a cube only 66 feet on a side, or would fit into one Olympic-sized swimming pool. Gold's scarcity, incorruptibility, and beauty explain why gold remains precious while things based on paper and politics, from stocks and bonds to government fiat money, have been valuable for a brief moment and then been 'delisted,' often suddenly, by history. With the steady, reliable glow of gold lighting your path, you never need worry that a company or its stock are being mismanaged, or that government or banks are manipulating values." Full story: Watch 5-minute Craig Smith video
Only A Stock Market Rout Can Avert A Trump Trade War -Investors
"The U.S. economy is cruising along so well right now that it might take a stock-market rout to avert a Trump trade war....Now that verbal bombs aimed at Europe, Canada, Mexico, China and others are being followed by live tariffs and retaliatory action, the prospect for talks have never looked so dim. The trade conflict seems likely to get worse before it gets better. Meanwhile, Republicans in Congress have largely ruled out trying to wrest control of trade policy back from the White House. The only thing that might stop a trade war in its tracks - before the costs escalate - would be a suddenly lousy stock market that begins to put Trump's economic record and GOP control of Congress in jeopardy....Ed Yardeni, chief investment strategist of Yardeni Research, wrote that his bullish stock-market outlook requires Trump's 'benevolent Dr. Jekyll persona' of tax-cutter and deregulator to triumph over his protectionist Mr. Hyde. 'If his tariffs trigger widespread retaliation and an outright global trade war, then earnings will take a dive,' Yardeni wrote. 'We continue to expect that it will all end peaceably. But it isn't heading in that direction right now.'"
The ominous new politics of trade -Ponte/WND
"Last Friday, markets were shaken by President Donald Trump's levy of $50 billion in tariffs via a 25 percent duty on 1,102 Chinese products involving industries such as aerospace, communications and information technology, and robotics....Mr. Trump's 'necessary' actions, says CPA Chairman Dan DiMicco, were 'to hold China accountable for its hostile actions and to ensure the future viability of key U.S. high-tech sectors.' 'China steals American technology by any possible means, then sells it back to the U.S. at a profit,' says CPA CEO Michael Stumo. 'In doing so, Beijing is not only directing the erosion of America's competitiveness in high-tech industries, but ensuring that domestic U.S. companies go out of business at the same time.'....Nations are starting to use targeted tariffs and other trade manipulations, wrote journalist Monica Showalter, 'to change our politics and force us [to] vote differently.' If you thought 'Russian collusion' was manipulating American politics, then what does it mean when foreign nations target their trade policies to harm one political party and thereby help elect its rival party? How long before one political party colludes with foreign powers to politicize trade?" Full story
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2018: Year of the Bubble?
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