Monday, August 5, 2019

Dow Industrials Down 500 Points on China Currency War Indication

UPDATE BELOW: Dow now down more than 700 points

U.S. stocks opened deeply in the red this morning after China allowed its currency to fall against the dollar, signaling the potential for a currency war.

The Dow Jones Industrial Average is down, -1.93% to 25,973.32 or 501.86 points lower. The S&P 500 is down  -1.96% at 2,874, down57 points, or 1.97%. The Nasdaq is down -2.52% or 179 points, 2.2% to 7,822.


A solid observation by Krugman:
Deep dive analysis at the EPJ Daily Alert. There is a lot to do right now.


The Dow Industrial Average is now down by more than 700 points.


  1. Wenzel,
    I’m a long time subscriber to EPJ Daily Alert. In spite of all the carnage in the market today, your gold and silver recommendations are up in excess of 37% for me year-to-date. I will also be buying into the current oil weakness ahead of expected inflation induced increases to the stocks and ETFs your recommend in the Alert. Lastly, I work in the banking industry; the information in your alerts make me look pretty smart to my peers and boss.

    The alert is well worth the money.

    1. Derek:

      Why do you think bank stocks do not have a greater than average rate of return? It is not like they are trading at levels out of proportion to earnings. I know of "family" community banks that do well, but it is only when they are bought up by the large regionals.

    2. Hey Jule,
      I’m not sure why you linked me and bank stocks. My comment centered on the fact that the gold portion of my portfolio, based on EPJ Daily Alert recommendations, was doing quite well.

      I’m not invested in publicly traded bank stocks at the moment. I would consider investing in one or more once the next recession hits. Everything I’ve read about the next recession suggests it’s going to be pretty bad - worse than the previous one. During the Great Recession several banks were bailed out. During the early part of the recession, a friend of a friend invested a large sum of money in Bank of America when the stock was in the low single digits. He thought the government would not let banks like B of A, Citi, etc. fail. He was correct. And he made out pretty well once the stock rebounded. I would consider investing in banks stocks similarly.