Well we got hurt today unfortunately the sell-off that I thought might have come yesterday came today with the Dow phone 343 points 1.3 percent i simpiy 500 off 38 points one point three eight percent Nasdaq off one hundred forty nine percent under forty nine point one point nine five percent in the Russell two K small caps down twenty.
Eight points one point seven nine percent as you can see as usual with sell offs the Nasdaq was the big laggard and the doubt was I guess an S&P 500 we’re about down is.
The same also when we spike on the upside we typically see Nasdaq lead that is because of a lot of high-tech high-growth names those names tend to respond I guess more volatile so if the market.
Goes up they tend to go really high where it goes down.
To go really far down that’s just the nature of the things there something.
Interesting with the rust 2k now the rest 2k is an index of small cap stocks so about under three billion or so some people might say under four billion dollars that’s the rest 2k typically.
The rest 2k moves less so it gets hurt less on a down day if it’s about trade because small cap names don’t usually have lots of international exposure right a small company usually doesn’t trade as much overseas as a big cap company would so that’s what the rusticate is and you can see that it actually did trade worse than Dow so it does happen like that sometimes so to cover what happened today first we have international.
Concerns especially over in Europe now in Europe Italy is in a bit of a debt crisis and they are putting together the budget for the next year the budget that’s been proposed really includes a lot of big deficit spending the European Union on the other hand has rules regarding how much of a deficit you can run so Mario Draghi the head of the bank’s there warned not by name but they inferred that Italy was in trouble and shouldn’t go forward with their budget and because of that Italy’s.
Bonds spiked and yield now yield and price are inversely related for bonds when a price goes down yield goes up big time when price goes up the yield goes down so in this case the Italian yield went flying up that means that the price must have gone down right and.
The price went down because there’s not much demand for Italian bonds in fact people are selling ophea in the Italian bonds because they’re concerned that the bonds now might not be paid off by the Italians because of the budget crisis so that was the first thing that hit us the second thing that hit us was concerns about a Chinese slowdown.
The Chinese economy pretty hard definitely the Chinese stock market pretty hard they’re down about 30 something percent which is a lot.
Worse than we are down and so investors are concerned that our tariffs are going to wear on them they’ve actually had some problems outside of the tariffs they had.
Corruption concerns they’ve had inflation carriers things like that where it’s hitting them but the tariffs aren’t helping so lots of Chinese names that we all are probably interested in Alibaba $0.10 I Chi names like that Baidu that are getting killed in fact I don’t have ID but I saw that it was.