The Market Bull – August 8, 2019
The major averages closed with modest gains on little news as market volatility continues to take center stage as the age of globalization nears its end.
Indeed the tit for tat trade wars and tariffs between China, the US and its other trading partners has echoes of the 1930’s that saw a global backlash against British political and economic hegemony. This time around it is of course backlash against US economic and political hegemony as its neo-colonial overreach becomes challenged by Johnny come lately China. While globalization has indeed helped to lift billions of the worlds population out of poverty the primary beneficiaries of this were in fact the Chinese themselves, sheltered by an essentially closed market. With the Chinese openly challenging the US with claims of it deliberately destroying world order and currency devaluation. Protectionism is the natural response as companies and nations seek to restore local supply chains and solutions. Essentially the think local first idea at the national and corporate level. One wonders if Trump is doing this because he actually recognizes the need for change, doubtful in my opinion. Or is this simply a manifestation of his chaotic management style that will lead to economic and social destabilization and probably worse. So far, the data indicates the latter. Either way change is afoot as the current problems have become simply too large to ignore. The power of global finance and corporations must be reined in. Effective solutions for sustainable economic growth that include climate change have to be addressed. Hopefully we will find solutions to these issues before the negative effects of protectionism and nationalism become too extreme.
Standard and Poors 500 Index closed at: 2,938.09 up 41.88
NASDAQ finished the day: 8,039.16 up 117.57
Gold ended trading at: $1,509.60 up $.10