All valid points. But let's remember that America today is not the America of the Reagan era. We've become so dependent on cheap products coming from abroad, I doubt we will be able to adapt if the rug was pulled from under our feet. Also the whole mentality has changed with the emergence of the Internet. Now the entire globe is connected and to implement an isolationist trade policy would almost be suicidal. Finally, it's worth remembering that our economy is a consumer economy. In order to sustain a economic growth, consumer spending needs to be sustained. Bringing manufacturing back home creates a two-fold problem. First, it will raise the cost of output across the board. This will dampen consumer spending. Second, if we choke off foreign investments, namely not importing, it will effectively kill the world economy, which in turn, will have a negative consequence for our own economy.
Well, with all the bad news today and we still pulled a big rally to close flat. It's not too bad. But closing near 2400 is not a good place since price could swing either direction.
Agreed and not suggesting isolationism or choking off foreign investments ... they need us as much as we’ve created the need to need them to produce our cheap goods.. delicate balance between the two as we are now the newly crowned consumer nation.... but the need to be highly selective in hedging our bets.... Good discussion... back the grind!
I think the mkt's dead here . Wait till the shocking #'s of 500-1m weekly claims hit in a week. Millions of people are begging for a rally to exit some longs their stuck in just like the shorts never got chances to exit their positions for 11 yrs .
I'm reading some other local forums too. Man, there's some guys there who's been roughed up pretty badly. A lot of these guys started their investment careers around 2010 and have only known this bull market we just finished. They've spoken about risk earlier, but I think it's one thing to know it in theory and another to actually live through it. The wife of one of the guys just liquidated her savings in stocks with a HUGE loss. Couldn't take the pain any longer or risk more downside.