Volatility rears its ugly head!
We knew it was going to happen…
You don’t raise rates, ignite a potential trade war, and expect that the markets are going to continue to hum at a record pace – it’s just not how things work.
Ever since Trump’s “tariff” talk – things have taken a turn for both the U.S. and global markets.
However, earlier this week – U.S. equities surged back – climbing more than 2% on news that tempers were finally starting to settle after the first shot was fired with news of this potential trade war.
Tech also seemed to make quite a comeback after taking a shellacking last week – leading the way back higher.
What really pushed the rally at the beginning of the week was Trump figuring out what he can and cannot do when it comes to the “America First” attitude he’s taken toward the global community.
Meaning he’s figuring out there are limits to what he can and cannot do…
Even though he’s getting the desired results from his trade news.
Earlier this week, Treasury Secretary, Steven Mnuchin, said that he was “hopeful” that China and the U.S. could reach a trade deal, with the EU asking for a permanent exclusion from the Trump tariffs.
Which seems to be the way Trump likes to do business…
He likes to make BIG moves – moves that seem to give him a position of power – and then he likes to negotiate from there.
It’s a solid tactic…
It’s one that has made him a billionaire and it looks like it could put the U.S. in a solid position going forward.
The one company that hasn’t yet seen much of a bounce back yet is Facebook (FB) – and for good reason…
Not only has it totally lost the public’s trust over the Cambridge Analytica debacle – but now the FTC is going to open a probe on the company and their practices.
This is bad news forFB…
And its shareholders, especially seeing as how the stock has dropped a whopping 13% in just the past few weeks.
But NOT as bad as it’s been for Facebook CEO, Mark Zuckerberg, whose net worth saw a drop of $10 billion over the whole unsightly event.
Facebook is in crisis mode – taking out page length ads in national newspapers and magazines to apologize for their lack of diligence when it comes to their users’ data.
It is something experts have been saying is a good thing, even though there’s one little line that seems to be catching everybody’s attention.
One of the lines in the letter talks about other Cambridge Analytica-type situation says, “We expect there are others. And when we find them, we will ban them and tell everyone affected.”
Many people were surprised that Facebook has gone this route – especially seeing as Zuckerberg told CNN that Facebook “wasn’t sure whether there could be other Cambridge Analytica-style situations out there…”
Which could mean that they’ve already found another potential data breach.
Facebook might be able to survive one data problem…
But if another one is revealed – the public just may not forgive them so easily and we might see the end of Facebook as we know it.
If you happen to hold FB in your current portfolio – it would probably be a good idea to really watch this story closely.
As far as the volatility goes…
I wouldn’t expect it to go away to quickly – there are a lot more tumblers that need to fall into place before things will settle down globally.
We’ll know one thing when it’s all over…
Either our President is a mad genius – or he’s just mad!
It’s this uncertainty in the things that can make the market turn on a dime that forced me to create GorillaTrades in the first place.
I thought it was time for me to take the guesswork out of it – I knew that if I were going to really succeed in the market – picks would have to be based on hard data and numbers.
So that’s what I did…
I created a system that doesn’t care about political moves or data leaks – and over the years – my subscribers have had the chance to build incredible wealth.
So if you’re sick of watching the stocks in your portfolio take a nose dive – do yourself a favor – and consider becoming a GorillaTrades susbcriber…
Let us do the heavy lifting – while you simply sit back and collect the profits!
Until next time…
“Right actions in the future are the best apologies for bad actions in the past.” – Tryon Edwards