Dow down a 1000...

[seminole97]

"China's National Statistics Bureau reported the latest, February PMIs and they were absolutely catastrophic:

• Manufacturing PMI crashed to 35.7 in Feb, far below the 45.0 consensus estimate, and sharply down from 50.0 in January. A record low.
• Non-Manufacturing PMI plummets to 28.9, also far below the 50.5 consensus, estimate, and down nearly 50% from the 54.1 in Jan. This too was a record low.

"Putting these numbers in context, they are far, far worse than the prints for both series reported during the financial crisis, when the mfg PMI dropped to "only" 38.8, while the non-manufacturing PMI never even contracted.

What is even more ominous is that while China's non-mfg PMI has traditionally been stronger, in February not only did it collapse into deep contraction, but it plunged to 5 points below where the manufacturing sector currently finds itself, a catastrophic 20-handle. This means that China's service industries, long seen as the guiding light to China's successful transition away from a manufacturing-led economy, is now devastated."

 

[seminole97]

They used to say when the US sneezes the world gets a cold.

Our proportion of the global economy and share of global trade today is very different.

China just had a heart attack, I'm curious what it means for the world.

 

[seminole97]

 

[Lone Clone]

Trad already hoarded the water for hurricane season. Buy booze.

I wish Trump would just tweet that the last two weeks is FAKE NEWS and calm everyone's nerves.

Don't know if he tweeted it, but he said in a speech that the doomsday talk by Democrats is a hoax. Does that count?

 

[markfromj]

Put 50k into Vanguard Index 500 30 minutes before market close. Plan to invest another 100k next week.

ETF? Perfect timing if so, as you got that last 10 minute rally.

Otherwise, still good.

 

[Joes Place]

"China's National Statistics Bureau reported the latest, February PMIs and they were absolutely catastrophic:

• Manufacturing PMI crashed to 35.7 in Feb, far below the 45.0 consensus estimate, and sharply down from 50.0 in January. A record low.
• Non-Manufacturing PMI plummets to 28.9, also far below the 50.5 consensus, estimate, and down nearly 50% from the 54.1 in Jan. This too was a record low.

"Putting these numbers in context, they are far, far worse than the prints for both series reported during the financial crisis, when the mfg PMI dropped to "only" 38.8, while the non-manufacturing PMI never even contracted.

What is even more ominous is that while China's non-mfg PMI has traditionally been stronger, in February not only did it collapse into deep contraction, but it plunged to 5 points below where the manufacturing sector currently finds itself, a catastrophic 20-handle. This means that China's service industries, long seen as the guiding light to China's successful transition away from a manufacturing-led economy, is now devastated."

TBH: China didn't have a choice here. Shut everything down, or allow the virus to continue taking over their cities and overwhelming the population.

The goal in other countries now isn't necessarily to eradicate it, but to slow the spread enough to "keep up", until vaccines and medications are ready to go. China didn't have that option - partly a self-own and partly the US completely backing its expertise out of these hotspot areas. Certainly the brunt of the responsibility rests on China, itself, but when the US cuts its capabilities to assist by 80% (not because it's our job to help China, but because - as we can see - WE are impacted too) there will be unanticipated risks.

The world (and US) is getting burned by taking that risk and not being vigilant and prepared. But that costs money, and no one wants to pay taxes. Do you think, in retrospect, the uber rich taking it in the butt on this one would accept an extra 1-2% out of their coffers to prevent this and the resulting losses they are incurring?

 

[luvmyhawks]

They used to say when the US sneezes the world gets a cold.

Our proportion of the global economy and share of global trade today is very different.

China just had a heart attack, I'm curious what it means for the world.

It’s not really that different.

 

[prlyles]

ETF? Perfect timing if so, as you got that last 10 minute rally.

Otherwise, still good.

All depends on what your goal is for that 150k......

 

[peacehawk]

All depends on what your goal is for that 150k......

Yes ETF. Timing was great but of course market could still drop another 10 to 15 percent. Goal is to make money!! Have another 300k ready to put into market over next 30 days. Sold my Tesla stock at 700 while it was on way up due to corona virus and was kicking myself as it went up to 900. But now it’s back below 700. Back in when it drops below 600.

 

[seminole97]

It’s not really that different.

In 1960 the US produced 40% of global GDP, by 2014 it was half of that share.

 

[markfromj]

All depends on what your goal is for that 150k......

?

 

[billanole]

In 1960 the US produced 40% of global GDP, by 2014 it was half of that share.

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Cool graph.