Multinationals with exposure to Emerging Markets aka. "The Dow", just lost their bid:
"Sales at U.S. companies with significant emerging market exposure posted a notably weak financial quarter, according to Goldman Sachs, amid a growing crisis in Turkey as well as ongoing trade and tariff woes in China."
EM currency collapse erodes multinational profit, in a feedback loop between capital flight and profit translation:
What do you call a country wherein 90% of the wealth accrues to the 1%. Wherein the Treasury is being looted continuously to the benefit of the rich. The government has been hijacked by industry robber barons. The environment is being degraded into a toxic wasteland. The demagogue-in-chief incites the masses by harking back to the "good old days" while blaming foreigners for all of the country's problems. The incited mob questions nothing. And any attempt to change the status quo is branded "Socialism", by idiots who've never lived a day of their lives outside the country.
You call that country Third World is what you call it.
A forty year experiment in fuck-you-jack-I'm-ok politics ending badly. At the end of all of this, America won't be synonymous with moon landings and WWII victories, it will be synonymous with taking the easy way out. In every direction. Selling off the economy under the auspice of *free* trade. Bailing out corruption to save capitalism. Printing $4 trillion to inflate stocks under the auspice of *free* money. Doubling the debt to save quarterly profit.
Looking around at this toxic-waste bloated society, apologists blithely rejoin that nothing has "changed" during the past several decades. This is the nature of denial, to focus on the facade while ignoring the underlying smoke and mirrors required to create the mandatory illusion. To forget the past and the machinations that got us here.
To protect themselves from reality.
U.S. stocks divided by Federal debt aka. The Lord of the Flies trilogy:
"Foxconn, the world's top contract electronics maker and a key Apple supplier unexpectedly posted a 2.3 percent fall in quarterly net profit on Monday."
Last month, Apple reported better-than-expected earnings, helped by sales of its pricey iPhone X [and human history's largest stock buyback]"
Sometimes when too mesmerized by the smoke and mirrors, one misses the forest for the trees...
Sometimes when blaming other countries for all of the problems, one forgets that global risk asset correlations are 100% in a down market...
