Stocks to fall 15% to December meltdown levels (Marketwatch)
Stocks to fall 15% to December meltdown levels, this chart predicts
Marketwatch
By Barbara Kollmeyer
May 31, 2019
Run for the hills.
That seems to be summing up the investor mood Friday after President Donald Trump shocked markets with a tweet promising tariffs on all Mexican imports until the illegal migrant situation is sorted. The likelihood of one more trade battlefield opening up means pretty much any asset associated with risk, notably equities, is taking a hit.
...And while thoughts of scant avocado or tequila supplies may be on your mind, dont forget that Mexico tariffs can impact big car makers, which have moved some production there shares of Ford F, -2.66% and GM GM, -4.02% are under pressure. Meanwhile, some are worried Europe may be next in line for tariffs, and those markets are also down sharply.
...Joel Kruger, currency strategist at LMAX Exchange. His chart spells out the possibility that stocks will revisit levels not seen since the December meltdown...Kruger says investors need to face up to the fact that by now, any benefits from already depleted easy central bank and government stimulus could be offset by new negative shocks to the global economy, Kruger told MarketWatch in emailed comments.
https://www.marketwatch.com/story/stocks-to-fall-15-to-december-meltdown-levels-this-chart-predicts-2019-05-31?mod=mw_theo_homepage