With the major US indices posting their worst week of 2019 and other financial markets around the world suffering declines of -1%, -2%, and 3% for the day, let alone the week – the question remains, are global markets shocked? Did the global markets truly believe that a 25 bps cut from the Federal Reserve was going to be enough to conjure up the animal spirits of traders and investors alike? Or was it the “shock” that President Trump ended the trade truce and is calling on additional tariffs to be placed on Chinese goods effective September 1st? A combination of both perhaps, but nevertheless, the markets have priced in the action by the Fed and has been doing so for months. The trade story of how a deal was imminent, strung along global markets for months, only to find that no deal was made and now there is even further escalation – and the Chinese are vowing to retaliate. With the absence of the Federal Reserve and the Congress during the month of August – what will markets cling to as they hope for some sort of rescue? Hope is not a strategy and if they must now pay attention to the underlying economic and financial data, then perhaps this week’s sell-off may be the beginning of more to come. If so, we will not be shocked. Stay diversified, stay vigilant, and stay with The Kapital News. #EndTheFed #WakeUpAmerica #Economy #Recession