What a day to pick to start my journey of trying to double my fun money.
What started as $2,053 has quickly become $1,878.
Markets are absolutely tanking today.
- S&P 500: -85.72 (2.93%)
- Dow Jones Industrial Average: -800.49 (3.05%)
Coming into the start of this journey, I had a few positions that I have been debating holding or selling off to start “clean.” I had a nice run up yesterday with my account balance running from $2,075 to $2,134, which gave me hope that I could just hold onto these positions and coast out to nice start.
My Positions
- Canopy Growth Corp. (CGC): 40 shares @ $31.93 (-6.64%)
- YETI Holdings, Inc. (YETI): 10 shares @ $28.05 (-5.62%)
- Baytex Energy Corporation (BTE): 200 shares @ $1.28 (-8.57%)
- Microsoft Corp. (MSFT): 1 share @ $133.98 (-3.01%)
So what is happening?
It seems a few different things are causing some real panic across world markets. Most notably, the constant whipsaw of trade posturing between the United States and China and the inversion of the yield curve.
Yield Curve Inversion
What the heck does that mean?
They’ve got a fancy chart over at the New York Times that is interesting to look at, but it appears to boil down to the 2-year Treasury yields trading higher than the 10-year yields. Essentially, long term interest rates have moved below short term interest rates. And historically, this has occurred before each recession.
Ruh roh.
Trade Tweets… (I mean, Talks)
The morning started with this:
China’s finance ministry issued a statement that said the US tariff’s were against the consensus that Trump and Xi had agreed to during the June summit in Japan. Then, later in the afternoon we got this:
After all that, I’m not sure what to think. Are we headed for a recession? Will tomorrow rebound just like it has the past few down days. I think I’ll keep an eye on futures overnight, wait, and see.
FNMNY 