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farooq

03/08/19 7:41 AM

#278674 RE: easycome92 #278666

Here is few things market worried but do not say,
1 Afghan war is ending, the money to fight this war will stop which will effect economically.
It is good for country our deficit spending could become under control. Same is for Syria.
Pentagon estimate were $5.6 trillion by 2017. Since that money will not be used to produce goods so it will effect economically and a recession will be felt.
War ending is good in longer term but in short run negative for domestic production.
Number two oil prices will decline further as global shift will happen to the electrical autos in coming years and transports will shift to non-petroleum base energy use. This will cause a huge draw down in many sectors of the market when the losses Will occur it effect will translate to other sectors also.
One reason that Russell 2000 is correcting more along with financials and transport sectors.
Market is the mechanism of taking into consideration for the future activity. So they will start discounting 6 to 9 month earlier.