Wow! What a day yesterday was. It was ironic that I did a post yesterday about stocks. So what is going on and will it stop?
The DOW suffered a serious beatdown yesterday, at one point being 350 points down and ending the day at 200 points down. What caused it? Well I am no expert but if I had to take a guess it would be DEBT.
Here is my take on it, and I think it will only get worse from here. See right now we are at a Trade War with China. Now Our president seems to think that he has the power to get what he wants. This maybe the case with some things, but with China, I dont think so.
See China is the largest owner of US debt, in fact right at 1.2 trillion dollars worth of debt.
So what does a country that owns so much US debt do when they get mad? They Stop BUYING our debt, in fact they start selling our debt. I believe this is what drove the DOW into the red zone yesterday. Now was it just a simple point being made or will it continue? We will know in about 8 hours.
So whats the solution to this problem? Well it's a 2 part answer. 1. Don't be in Debt! 2. Buy tangible assests. No for you and me, getting out of debt is easy and doable, for the United States Of America, it is Impossible with out a collaspe and a reset.
So buckle up, this ride could get bumpy.
I am not a financial advisor, these are just my opinions, please do your own research before investing.
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