Will the Dow's Knee-Jerk Trade War Reaction Calm Down?

The Dow didn't respond that much immediately after Trump ordered the list of Chinese companies to target in his $50-billion tariff package, but as the news sunk in the market tanked. Now it seems to be regaining lost ground. But do we have to go through this every time, when the market slips into panic mode before they have time to think about things. We're not at trade war point yet. This wasn't an executive order slapping tariffs on China. It was just an order for a list .... why all the instant panic. So, with this in mind are the markets going to be rational during this period? Is it a good time to buy on the dip? 

 

 

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3 hours ago, dowmike said:

The Dow didn't respond that much immediately after Trump ordered the list of Chinese companies to target in his $50-billion tariff package, but as the news sunk in the market tanked. Now it seems to be regaining lost ground. But do we have to go through this every time, when the market slips into panic mode before they have time to think about things. We're not at trade war point yet. This wasn't an executive order slapping tariffs on China. It was just an order for a list .... why all the instant panic. So, with this in mind are the markets going to be rational during this period? Is it a good time to buy on the dip? 

Dip buy! Dip buy!!

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I'm thinking buy on the dip, too, but geez--it's not looking great. Thought it would have bounced back by now. Looked like it was going to earlier today. It's lost 424 points as of 5pm EST. This is scary.

 

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And no one's got a clue. It's been in correction since 8 Feb ... or has it been in and out of correction. Or, here's one take on Barron's after the close from Wellington Shields' Frank Getz: 

"They say bull markets don't die of old age, but age does take its toll. This action seems that of an old bull market, one which made a solid low in February and doesn't quite know what to do with it."

Thanks, Frank. Very helpful. 

 

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