Volatility is the new norm: Mark Avallone

Volatility is the new norm: Mark Avallone


MARIA: WELCOME BACK, MARKETS ARE LOOKING TO REBOUND THIS MORNING, PRETTY GOOD TRIPLE-DIGIT BOUNCE AFTER MASSIVE MELTDOWN YESTERDAY, U.S.-CHINA TRADE TENSIONS FLARING UP. THE U.S. ACCUSING CHINA OF CURRENCY MANIPULATION AND THE PRESIDENT DID THAT LATE YESTERDAY, THE S&P, THE DOW AND NASDAQ WITH DRAMATIC COMBO YESTERDAY, JOINING US MARK AVALON, GOOD TO SEE YOU ON THE DAY THAT MARKETS ARE STRUGGLING COME BACK FROM THE HUGE SELLOFF YESTERDAY, WHAT WOULD YOU DO TODAY COMING IN AFTER 800-POINT SELLOFF YESTERDAY, WHAT ARE YOU ADVISING CLIENTS?>>WELL, I THINK IT’S A WAIT AND SEE, FIRST OF ALL IF YOU’RE IN THE MARKETS I DON’T THINK YOU PANIC AND SELL OUT BECAUSE WE’VE HAD ROUGH HEADLINES AND IF YOU’RE NOT IN THE MARKET I THINK YOU WILL CONTINUE TO SEE VOLATILITY SO NO REASON TO DIVE RIGHT IN. LOOK, WE’VE HAD ONGOING SPAT WITH CHINA, IT WILL CONTINUE THAT WAY, MAY CONTINUE FOR A DECADE. THIS IS JUST A CONTINUATION OF CHINA FLEXING ITS MUSCLES AND SHOWING THE U.S. TARIFFS OR TWEETS OR MESSAGES AND I THINK WE AS INVESTORS HAVE TO UNDERSTAND THIS IS GOING TO BE A SLOW PROCESS THAT’S GOING ONLINE AND VOLATILITY IS THE NEW NORM. MARIA: YEAH, DO YOU WANT TO SELL THE THINGS THAT ARE GOING TO GET PARTICULARLY HARD HIT FROM THE TARIFFS BECAUSE I KNOW THAT THIS LATEST TARIFF THREAT IS IMPACTING THE CONSUMER SECTOR PRETTY HARD, YOU’VE GOT THINGS LIKE CELL PHONES, LAPTOPS, FLAT SCREEN TV’S, ROUTERS, FOOTWEAR, TOYS, ALL CATEGORY GETTING HIT BY 10% TARIFF ON $300 BILLION GOOD COMING FROM CHINA.>>IF THE U.S. CONSUMER IS GOING TO STOP PURCHASING THAT’S GOING TO HAPPEN, THE CHINESE CURRENCIES WILL MIN MISSOURI IMPACT OF TARIFFS AND RETAILS ARE FEELING THE PINCH TRYING TO ABSORB SOME OF OF THIS. I DON’T THINK IT’S ONE FOR ONE TARIFFS DO TAKE EFFECT, WE WILL SEE MASSIVE IMPACT, SEVERAL MITT GEANTS THAT THE ECONOMY WILL BE ALLOWED TO BE ABSORBED INTO IT AND HENCE INTO STOCK PRICES.>>THERE’S SOME HEADLINES SAYING THAT CHINA IS TRYING TO KEEP THE YUAN FROM DEVALUING FURTHER, IF THAT IS, IN FACT, TRUE, WE HAVE THAT THEY MIGHT SELL 30 BILLION YUAN IN HONG KONG MID AUGUST, WILL THAT MATTER TO OUR MARKETS?>>WELL, I THINK STABILITY IS WHAT WE ARE LOOKING AT AND RATCHETING DOWN OF TENSIONS, IF THEY DO TAKE STEPS LIKE THAT THAT WOULD BE A REASSURANCE, UNKNOWN IS WHAT DROVE YESTERDAY, WILL THEY GO ONE STEPS, TWO, THREE STEPS, PULL THAT BACK AND PLAYING BALL WITH THE U.S. AND GLOBAL ECONOMIC COMMUNITY, THAT’S A NET POSITIVE, SO, YEAH, ANY STEP BY THEM IN THAT DIRECTION WOULD BE WELCOME TO REDUCE THESE FIERCE AND JITTERS.>>GO AHEAD.>>NO, YOU GO AHEAD.>>BOB, WHAT’S GOING TO BE THE IMPACT ON INVESTING, ARE BUSINESSES GOING TO OVERCOME RELUCTANCE EVEN THOUGH THEY DON’T KNOW THE RULES OF THE GAME AND HOW IS THAT GOING TO AFFECT THE ECONOMY IN 20201?>>WELL, YOU ALL HAVE BEEN TALKING ABOUT THAT ON THE PANEL FOR SOME TIME NOW IT’S THIS LACK OF FORESIGHT, LACK OF ABILITY TO PLAN, THE LACK OF BEING ABLE TO MAKE MEANINGFUL CAPITAL EXPENDITURES AND IT’S REALLY A SHAME BECAUSE IN LIGHT OF TAX CUTS TERRIFIC BOOST FOR BUSINESS, THE HE IS TANK CRI REMAINS BECAUSE OF LACK OF CLARITY. IF WE COULD GET AN ELEGANT DEAL SO THEY CAN TAKE THE HEAT OFF AND GET SOMETHING IN PLACE SO BUSINESSES CAN CONTINUE, THAT WOULD BE A HUGE BOOST. 8 TENTHS OF A PERCENT. DAGEN: MARKS, ONE THING THAT I WANT TO ASK, IN THIS ENVIRONMENT, COMPANIES FLUSHED WITH CASH COULD BENEFIT OF TARIFFS OF SAY APPLE, APPLE COULD TAKE MARKET SHARE IN THIS ENVIRONMENT IF GOODS MADE IN CHINA SAY OTHER PHONES THAT ARE IMPORTED TO THE U.S. SAMSUNG, PHONES MADE IN CHINA, THEY COULD BE — APPLE COULD TAKE MARKET SHARE IN THIS — WITH THIS BACKDROP AND ALL THE OTHER COMPANIES THAT ARE FLUSHED WITH CASH THAT COULD EAT THE TARIFFS IN THE SHORT RUN, ARE THOSE THE STOCKS YOU WANT TO LOOK AT?>>THEY COULD DO THAT, THE BUY CHINA RHETORIC THAT WE ARE STARTING TO HEAR AND THAT COULD BE OFFSET TO ANY BENEFIT THAT YOU’RE OUTLIGHTING, APPLE, WORLD-CLASS LEADER, THEY CAN CHOSE TO ABSORB SOME OF THIS, I’M MORE CONCERNED THAT THEY CAN LOSE ACCESS TO ONE OF THE WORLD’S BIGGEST MARKETS AND THAT — THAT’S A BIGGER CONCERN FOR ME IN THE TRADE FIGHT WITH APPLE, MORE OF THE THREAT THAN OPPORTUNITY. MARIA: LET ME ASK YOU ABOUT THE OP-ED, DEFENDING THE FEDERAL RESERVE, ALAN GREENSPAN, JANET YELLEN, ALL GOT TOGETHER, THEY WROTE OP-ED IN THE JOURNAL THIS MORNING ADVOCATING FOR INDEPENDENT CENTRAL BANK, INDEPENDENCE OF THE CENTRAL BANK, AMERICA NEEDS INDEPENDENT FED, THEY WRITE EVEN THE PERCEPTION THAT MONETARY POLICY DECISIONS, POLICY CAN UNDERMINE PUBLIC CONFIDENCE. INTERESTING THAT THEY GOT TOGETHER.>>I DON’T THINK THERE’S INDICATION THAT JAY POWELL IS RESPONDING TO PRESIDENT TRUMP JUST YET. I THINK THAT’S THE ISSUE. I DON’T THINK THE FED CHAIR IS IS REACTING AND I THINK IT’S THE COUNTEREFFECT, INTERESTING THEY THEY ALL CAME OUT AND WROTE THAT, I DON’T THINK IT’S HAPPENING JUST YET. MARIA: ALL RIGHT, WE WILL LEAVE

40 thoughts to “Volatility is the new norm: Mark Avallone”

  1. Hey maria, buy American or Korean or Japanese,ororororor. There is usually a choice ,that is for those who can think our way out of a concern that could turn into a situation.

  2. Rickey the Rat, the leader of the Baltimore "Rat Pack", is lobbying China not to discount his stock in "Kraft American Cheese"

  3. You can't TAPER A PONZI SCHEME – a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors.

  4. China's plan is to achieve uncontested world domination AND CONTROL during the 2030s.

    Plenty of quislings eager to help them do so.

  5. We don't trust fedbank. They should not be independent they will be serving themselves and the top 1%. He is fighting for the ppl if they don't understand that they should step aside.

  6. Blah, blah, blah. Bring China to its knees and have them start playing fair in the world market. China has been bending us over for years.

  7. China is running out of dollars, so they're not trying to manipulate their currency. They simply stopped back the yuan, and if they let it float it will lose 30-40% of its value. American businesses have had a year and a half to start moving their manufacturing sourcing to other nation and many have.

  8. These businesses are desperate for any deal. I would start giving a public beatdown of China just to show I'm going inside my bunker for a trade war of attrition. Businesses never thought they'd be caught in the middle not able to commerce. But that's on them. Vietnam and America is open for business.

  9. The probadly with world economy is the PRICE/INTEREST keeps climbing that isn't adding up to the salaries yes the world will fall if we don't take care of this NOW

  10. Give up China completely Americans……no one life’s living depending on China supplies……Americans are responsible for America……

  11. Stop helping China gain powers to control worldwide lifestyles and obeying the Chinese wanted…=…imperial systems the Chinese ways of life living with their control……

  12. Trump: "China is manipulating the Yuan."

    China: No we don't, and we're going to devaluate the Yuan just to prove you wrong.

  13. China is copycat nation Usa has got the brains the largest ecomony in the world Trump can bring China to their knees

  14. Pick up good, individual stocks that are down on the "China story." International Paper, 3M, Caterpillar, Ford, GM, etc.

  15. Retail sees an opportunity to hike prices to increase profits. The impact at the retail level is not immediate. There are products already in the pipeline/warehouse that have not been impacted by aby pass-thru costs. Goldman is full of it.

  16. American companies must learn to get out of China, before they get stuck with Chinese products that Americans won't buy.

  17. Buy low sell high. How many idiots does the market have that so many sold out. The sell off only made the rich richer. Only the stupid have been selling off at a loss.

  18. Start buying second-hand! with 5G technology you'll be wishing you had second hand items because they'll be monitoring you through your smart meters collecting data through your smart appliances lectronics and your clothing. Watch" the 5G Dragnet" on YouTube! Buying second-hand you can buy the majority of the stuff at a fraction of the cost!

  19. Time Americans read .
    The Congress shall have Power To…coin Money, regulate the Value thereof, and of foreign Coin….

    ARTICLE I, SECTION 8, CLAUSE 5

    Time to send the federal reserve packing. They are not federal nor answerable to our government. They are tolerated. Time to abolish them.

  20. I want to see some USA made things in my home as of now 90% is all from China and looking at clothing in the department store everything I touched was made in Indonesia, hate the material, tax the hell out of anything coming to this country. Even the Kardashian’s were starting a active wear outside the USA, I’m so sick of what the rich do they’ll never be happy ever…

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