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Roller-Coaster Market

The Dow dropped about 470 points by closing bell yesterday, marking its steepest decline since January.

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Unless you’ve been sequestered from all media, you’ve seen the headlines. Just this morning, we read…

“Stocks plunge as trade-war worries rattle investors” — Market Insider

“Stocks Extend Global Slide as Trade Worries Simmer” — Bloomberg

“Why the market freaked out when Trump tweeted about trade” — CNBC

As for that last headline, on Monday the president tweeted that the 10% tariffs on some Chinese goods would go up to 25% on Friday. With that, a Chinese delegation said they’d be canceling plans to negotiate with the White House administration.

Since then, it’s been a back-and-forth, will-they-or-won’t-they game that’s caused market turbulence across the board — with the exception of gold and bitcoin.

Your thoughts on the trade war and how things will shake out at the stock market?

Better yet, how do you think trade-war hijinks will affect your portfolio.

Your Rundown for Wednesday, May 8, 2019:

Visionary or Dreamer? 

Last week, Tesla  was knocking on doors at Wall Street, trying to muster up $2.7 billion in stock and bond offerings. This seemed to placate investors; shares floated upward 8%.

This week, loose cannon Elon Musk was on an investor call when he talked up his vision for Tesla: succeeding in the autonomous driving space. He even put a figure on what Tesla’s market cap would be after cracking the code on self-driving — $500 billion.

Musk… visionary? Maybe. Dreamer? Definitely.

Barclays auto analyst Brian Johnson notes Tesla is shifting from “high-volume, high-profit auto sales … now it’s all in on autonomy.

“Tesla [is] apparently pivoting from auto profits to autonomy profits.”

Meaning investors will be waiting even longer for the automaker to become profitable.

Final thought: even though Tesla’s shares recovered 8% on news of Musk’s fundraising efforts, shares are still down 24% year to date.

Market Rundown for Wed. May 8, 2019

S&P 500 futures are down 3 points to 2,881.16.

Oil is down 12 cents to $61.28 for a barrel of WTI.

Gold’s added $2.30 to its price of $1,287.90 per ounce.

Bitcoin is up $97.05 to $5,917.78.

Have a good day. We’ll talk tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown. Aaron’s been with Agora Financial/Seven Figure Publishing for 13 years. He's been covering technology and markets for over a decade.

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