The Corporate News Has Schizophrenia

Remember back in May when the stock market was seesawing 100’s of points from the China trade talks?  During Mnuchin’s negotiations, for a short period of time in the afternoon, people actually thought we might get a surprise deal.  It went from “talks being done for the day”, to talks being  “constructive”, to “nothing planned as of now”.

We archived the headlines behind this insane volatility

Treasury Secretary Mnuchin on further China trade talks: There’s nothing planned as of now May.10

China’s Vice-Premier Liu He ‘came to US against pressure’ to prove Beijing’s sincerity in trade talks

Beijing slams US for ‘unreasonable suppression’ of China Mobile May.10

Dow turns positive, rebounding from 358-point loss, after Mnuchin says trade talks ‘constructive’ May.10

Stocks cut losses after Treasury Secretary Mnuchin says trade talks were ‘constructive’ May.10

Treasury Secretary Mnuchin says China trade talks are done for the day May.10

Dow down 280 points after the US slaps China with a big increase in tariffs May.10

Dow only down 80 points after the US slaps China with a big increase in tariffs May.10

Stock market futures fall after Trump says ‘no need to rush’ on China trade deal May.10

US tariffs on China jump as deadline passes, China immediately says it will retaliate May.10

Stocks cut losses after Trump says he has ‘alternative’ to China trade deal, Dow down 180 points, CNBC, May.09

Dow drops 350 points as this week’s sell-off accelerates after Trump says China ‘broke the deal’ CNBC, May.09

Stocks attempt to rebound from trade war fears after Trump says China still wants to make a deal CNBC, (May 8 2019)

China backtracked on nearly all aspects of US trade deal: Sources (Wed, 8 May 2019)

Stock market: US-China trade deal standoff (May.08, 2019)

We saw these same Schizophrenic headlines today with regard to the rate cut drama.  For months the news media has been saying  a cut was 100% certain, but when rates did in fact finally get cut — after 1000’s of headlines  — Powell disappointed everybody when he said:

“We’re thinking of it essentially as a midcycle adjustment to policy….“That refers back to other times when the FOMC has cut rates in the middle of a cycle and I’m contrasting it there with the beginning of a lengthy cutting cycle,”….. “That is not what we’re seeing now, that’s not our perspective now.”  And the market TANKED!!

“Fed Chairman Powell says rate move was a ‘midcycle adjustment,’ hinting more cuts not a guarantee”, CNBC

Today the schizophrenia resumed with this headline:

Dow jumps 200 points on hopes the Fed will follow through with a second rate cut, CNBC

How many heart attacks could have been averted if government officials would just be forthright.  Just tell us the truth!

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