Varney is using the “Crash” word.

When he starts using the “Obama” word, then it’s time to buy.  At the moment his guests keep pulling him back to the “Correction” word.

16 thoughts on “Varney is using the “Crash” word.

  1. As long as the “correction” makes its way past early next week so my next mutual fund transactions occur, I’ll be better off in the long run. I don’t see the markets jumping to recover these current losses in less than a week.

    Liked by 2 people

    1. Yes, recovery will be sloooow…

      Most people don’t appreciate the “Bullwhip” effect of supply chain disruptions. Even small “ripples” can have far-reaching and severe ramifications. Inventory management systems (many automated) will have to be recalibrated on the fly as different distribution channels are affected at different times and in different ways.

      NOTHING like this has happened to the modern global supply chain, ever. Our companies are reacting, but hampered by the confusion of the Government systems that are frozen by leadership incompetence.

      I pulled 80% of my funds out as soon as the news came out from China, and “saved” a considerable amount. Amateur opinions aside, jumping back in to make a “quick buck” is a real bad idea.

      Liked by 1 person

    2. RE: “Inventory management systems (many automated) will have to be recalibrated on the fly as different distribution channels are affected at different times and in different ways.”

      How so? In the automated systems, the algorithms won’t change any. They will continue to churn out new inventory control values (stockage position, re-order point, economic order quantity, etc.) automatically as new historical data accumulates. The main shocks will occur in the vendor catalogs as inventory managers look for alternative sources of supply.

      Supply chain disruptions will certainly cause some extra requirements for data entry, as you point out, but I would expect inventory management systems to ameliorate problems more than contribute to them.

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      1. All I know is that we have received notifications from all of our suppliers (light bulbs, fixtures, associated materials) to expect supply chain issues in getting material in to the country. They may have to got regional rationing. I don’t think any auto or manual changes are going to fix that.

        Liked by 1 person

        1. RE: “I don’t think any auto or manual changes are going to fix that.”

          They won’t, but you won’t need new inventory management software. Chances are the software you already use will make it easier to ride out the supply disruptions, not harder.

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          1. Small business.(The owner, his son, his wife, me and outside sales rep) I Am the software. And the bookkeeper. The issue is with our suppliers and their ability to receive inventory to ship to us.

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      2. It’s a semester long course in SCM, or you self teach as opposed to more lazy questions.

        And btw, you wrong on every point you attempted to make. More to the point, you don’t even understand the question or complexity of the issue.

        Liked by 1 person

        1. I see. This is another case of you being in possession of so much knowledge it is impossible for you to share it.

          Nevertheless, I challenge you to identify just one thing I wrote that was wrong.

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          1. Yes, John, it is exactly that.

            Your assertions don’t even make sense. You don’t have any clue what you’re talking about, so no, I won’t be wasting my time.

            Suggestion; educate yourself BEFORE you try opine about a subject area that you just Googled…

            Liked by 1 person

          2. RE: “I won’t be wasting my time.”

            Suit yourself. You have certainly convinced me that you are in fact ignorant on this topic.

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  2. I would expect substantial recovery in about 2 months, but full recovery not until after Trump is reelected.

    And don’t try to tell me that they will recover in less than 4 years if Sanders or Warren were elected.

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    1. @Tabor
      Hmm.
      Maybe you were right when – during the Obama years – you said over and over again that the strong stock market was an unsustainable bubble fueled by deficits. Since then you have said many times that you think that Trump magic has changed that. Maybe that is why you shouted Buy! the other day (about 3000 DJI points ago) as the bubble began to burst? You still think Trump is magic? I guess you do.

      Liked by 1 person

      1. The lowering of the corporate tax and the reining in of hostile regulators are real changes to the profitability of US companies that will endure.

        I do think the market had gotten ahead of itself a bit and I have been expecting a drop of 5 to 10% for a while, but Coronavirus has both magnified and masked that.

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