Harry joined Economy & Markets TV’s Dave Okenquist with a midday update on the markets. We’ve seen wild swings in stocks over the past six weeks. Every day brings crazier and crazier headlines that induce panic on Wall Street.
The Fed’s signaled that it’s going to keep raising rates and unwind its balance sheet even if stocks slip. Meanwhile, the White House seems to think stock prices are high enough to implement policy changes that will shake up markets, at least in the short term.
We’re hearing grumblings about possible antitrust action against e-commerce giant Amazon. And, of course, the biggest impact on the markets comes from news on escalating actions that could lead to a trade war with the world’s second-biggest economy, China.
But allowing for small shocks to the markets is a dangerous game because there’s no guarantee of containing the damage.
Harry spotted a possible scenario for stocks that resembles one of the worst market crashes in history.
In this scenario, the market tanked so quickly and so deeply, that traders had no chance of getting out in time… unless they had a plan, a message that Harry stressed yet again in my chat with him today.