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Well Trump really hosed the stock market with his steel and aluminum announcement

Discussion in 'Economy' started by Susan Addams, Mar 2, 2018.

  1. Susan Addams

    Susan Addams Unregistered User

    The market is dropping like a rock thanks to Trump's tariffs on steel 25% and aluminum 10%. There's a possibility that the Russian nuke powered cruise missile is a factor, but I'm pretty sure it's just the tariffs.

    I don't really need a reference link for the above. Did Trump just cook the goose that was laying golden eggs? I've lost thousands of dollars in unrealized gains.

    I'm really going to be pissed if this continues on past my break even point.

    What do you think? Is the market going to factor this in and then get back to its steady climb? And what do you think about the tariffs themselves? Do you think they were a good idea? Are they going to help the economy?

    One comment, our steel industry has been practically road kill for years. I think it all went to China.
     
  2. MemphisMark

    MemphisMark Old School Conservative

    Tariffs are a bad idea, as explained in Economics in One Lesson (free PDF of the book). While it does "protect" domestic jobs and industries, it alters the free market by keeping prices artificially higher than they should be and hurting consumers through higher prices.

    However, foreign countries have been known to subsidize companies exporting materials like steel and aluminum to the US (thus allowing them to deliver their product below the price of domestic materials). This has the result of bankrupting the domestic industry and once our competition is gone, the foreign companies can charge whatever they want, up until it's cheaper for someone to restart the industry domestically.

    Suzy, do not pay attention to market swings. If you're going to invest, plan on leaving your money in there for at least 5 years. Jumping in and out of the market leads to buying high and selling low, rather than the other way around.
     
  3. Susan Addams

    Susan Addams Unregistered User

    We had to do something to revive the steel industry that was stolen from us. How else would you address that?

    I enjoy watching the stock market the same way other people watch TV. I have my picks now: mostly Amazon, with a seasoning of Apple and PayPal. I expect to keep my current portfolio for the next several years with no further market activity. I was tempted to sell my AAPL and PYPL and buy more AMZN to make it 100% when the market was down but decided that was stupid tinkering.

    Truth be known, I got frustrated with my iPad mini not having cellular Internet, so I bought a second one and now the first one is permanently tuned to AMZN and sits on my den corner table doing AMZN 24/7. Not worth selling on eBay. I watch my stock like a wolf watching a ground squirrel hole.

    I can watch whatever I want. The question is whether I leave it alone or mess with it. My only recent tinker was to sell Berkshire Hathaway BRK.B and use the proceeds to buy more AMZN, then kicked in more $ to round out the AMZN shares to a sweet number.

    I'm not doing any more trades this year, or that's the plan. I'd probably follow my portfolio down to break even if the market tumbles, maybe dump the Apple and PayPal before they show a loss then plan on spending the proceeds all on Amazon if it starts to stage a recovery. Yeah, I know, all Amazon is not diversity.

    I remain convinced that Amazon will hit $3,000 in two years. That's double today's closing ($1,500) and even more X than my weighted purchase price. (I think I'm in at $1,257 IIRC.)

    Put me down for Amazon $3K in March 2020 as a prediction. We can refer to this post after my final edit as proof. That's split adjusted price of course.

    There is a reason Amazon appears in my user title. I'm betting a huge piece of my net worth on it. I think the only way I can lose is if some stupid government moves in and wants to break up Amazon because they are making too much money. Of course if HRC were president that would be inevitable. I'm sure glad she's playing her stupid bitch number...
     
    Last edited: Mar 3, 2018

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