America Needs a “Values Clarification”

Your letters on a $15 minimum wage, trade wars, American manufacturing, and skills workers need for the road ahead:

“You hit the bullseye with your answer to the wage heist. Keep saying it over and over and louder every time you say it.”

That’s our goal, thank you.

“You brought up the point about factories going overseas. I believe that is where it started.”

Offshoring and NAFTA. You want to tell the story of the death of the American middle class, start there.

“How can [American workers] compete if we aren’t as well prepared from an intellectual standpoint? We need a serious dose of values clarification these days.”

Amen, dear reader. America needs a values clarification. How about we start with this:

Sciences, technology, engineering, and math. As a country, that’s what we should value. Not the number of followers an “influencer” has on social media.

The muscle jobs are gone and they aren’t coming back. Blame automation, blame NAFTA, blame corporate America, blame whatever you want…

… If America’s going to compete and succeed in the global economy of the future, we better get our act together starting with education. Do you agree?

Your Rundown for Tuesday, August 6, 2019:

Where The Trade War Goes From Here

The Wall Street Journal this morning reports the Chinese currency, the yuan, has stabilized for now and stocks have regained ground.

At writing, S&P 500 futures are up 34.00 at 2,864. Dow futures are up 296 at 25,846.

Yesterday, the Dow fell over 760 points, mainly in response to China “weaponizing” the yuan, the use The New York Times description.

A devalued yuan makes Chinese exports cheaper and helps offset the effects of the up to $300 billion in added tariffs slapped on Chinese goods.

Today’s question is, what happens next… and what can you do?

CNBC noted yesterday after the market close that during the life of this bull market, the average return one month after a Dow sell off of 2.5% or more is 4%.

Let’s put that in context. Since this bull market began in 2009, the Dow has had down days of 2.5% or more 30 times.

Among those 30 sell offs, the average gain for the Dow a month later has been 4%.

While that may sound like good news, there is a catch.

Trade war escalation like we saw yesterday is unique to this bull market.

We also just had our first interest rate cut in a decade last week, and if the market remains soft could be headed for another in September.

Point is, if the history of this bull is any guide, the Dow could rebound nicely in the next month providing bargain buys all over the place – think Apple, Pfizer, IBM, and so on.

Disney’s (NYSE: DIS) another one. We mentioned DIS yesterday.

All told, DIS’s 2.41% decline yesterday wasn’t the end of the world. And it could make for a good buy with earnings coming out after the close today.

Bottomline: Days like yesterday have a tendency to bring the permabears out of hibernation, and you can bet those talking heads will get lots of media play over the days ahead.

Be smart and make decisions based on your plan. Don’t get swept up in media frenzy.

Let’s take a look at the numbers…

Market Rundown for Tues. August 6, 2019

At writing, S&P 500 futures are up 34.00 at 2,864.

Oil’s up just slightly at $55.02.

Gold – star of the show yesterday – it’s at $1,476.

Bitcoin’s at $11,779.Today’s Rundown reviews a simple, one-step trade war survival guide for the days ahead. We also take a look at reader feedback on America’s workforce and check in on the markets this morning.

Have a great day. We’ll talk more tomorrow…

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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