This Stock Market Index Is Flashing a Clear Warning About the Economy

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The Russell 2000 includes smaller companies that are more sensitive to the whims of the economy. These companies tend to run thinner profit margins that can be more easily eroded in a downturn, and they have fewer levers to pull than big companies if they do get into trouble.

After surging to a new high in November on optimism about the new Trump administration’s pro-business policies, the Russell 2000 has tumbled more than 18 percent, roughly double the decline of the S&P 500 since it hit a peak last month.

https://archive.ph/HrKmm

[Digitalbanana]

Donald Trump's economic policies are causing significant damage to the US economy, as evidenced by the stock market correction with the S&P index falling over 10% from its peak in less than a month and Russell 2000 down 20%. Trump and the American right's inability to grasp reality, since they are feeding off their own fake news and blocking out objective news, mislabeling unilateral tariff smash and grabs as negotiations, is leading to this economic vandalism, and Trump now acknowledges the possibility of a recession, despite his previous promises of quick turnaround.

[spidermike007]

The stock market likes stability, the economy in general likes stability, Wall Street likes stability, bankers like stability, consumers like stability, all of which fly in the face of one of the most highly unstable men in the world currently leading the United States. Not only is he unstable he's a an idiotic maniac with a terrible plan that could very likely destroy the world economy.

 

The man is extremely dangerous and needs to be stopped. 

 

 

 

 

[lordgrinz]

People do realize you can make money no matter which way the stock market is head, right?

[transam]

Use the 25th Amendment to the Constitution before it is too late........😬

 

And get Musk out-a-there.......🤕

[Walker88]

17 minutes ago, lordgrinz said:

People do realize you can make money no matter which way the stock market is head, right?

I know that,but most people do not know the process of shorting. Also, the vast majority of funds that manage people's 401Ks are not allowed to short, so they have positive returns only in up markets.

 

Futures might be a zero sum game, but the equity market is not. The $5,000,000,000,000 that evaporated in the last few weeks is gone. No longer exists as a paper gain.

 

Friday's Consumer Sentiment number was the worst in 30 years. The inflation expectations were horrible.

 

The recently released CPI is a lagging indicator, so that +2.8% rate does not reflect the movements related to tariffs, as those first filter through the PPI at the wholesale level.

 

The market is trading very much like Japan in early 1990. Extended drops, then dead cat bounces. No big blowoff, just a bleed that keeps coming. Back then in Japan the pundits were all optimistic. It was a "buying opportunity", and soon would go back to new highs.

 

New highs took 35 years.

 

Had the US markets seen a blowoff like 19 October 1987 or the tumble when Covid first hit, I might think this drop is temporary. Because it is doing such a good impersonation of Japan 1990, I think the December highs in the S&P and NASDAQ won't be topped for 20 years.

 

While I'm prepared to be proven wrong, everything I see says generational top.

 

This Administration has gone out of its way to both do stupid things and alienate the people it needs to fund the deficit, a deficit that will only explode with his tax cuts. His capricious attitude toward law also takes away the one thing that makes US markets attractive to foreigners: ease of entry and exit.

 

I saw a recent poll, which I will try to find and LINK, that only 16% of non-Americans have a favorable view of the US now. That has fallen 60 points in two months. That will manifest itself in trade, tourism and investment. The US is approaching North Korea level in terms of its favorability. Nobody likes their fat little dictator, and nobody likes our fat dumb dictator wannabe.

[impulse]

Meanwhile, the price of gas is less than $3 at the pump in 31 states.

 

Don't take my word for it.  Google it.

 

[Mike_Hunt]

2 hours ago, impulse said:

Meanwhile, the price of gas is less than $3 at the pump in 31 states.

 

Don't take my word for it.  Google it.

 

I paid $2.87 yesterday.