Audentes Therapeutics “BOLDly” Moves (+105.98%), Hecla Mining (+8.75%), & TVIX (+12.43%) As Markets Tank on Fear – Vista Partners Daily Market Recap 12/3/19

It was a bit of a roller coaster again today where we saw accelerated downward pressure on the markets to make it 3-days of consecutive declines. The markets swallowed unhealthy and bad tasting pills with regard to the US-China trade war saga once again as President Trump stated that he had “no deadline” which obviously conflicted with the belief that we might still have a chance to see a Phase One deal in place prior to yearend. The other understanding that he offered was that the US-China negotiations may well continue to at least the November 2020 elections and/or beyond.

We also received the not so great news that involves further economic conflict as the US is proposing a tax of up to 100% on $2.4B of French imports (i.e. cheese, handbags.) (Please say it ain’t so..!) This emerged apparently as France passing a digital tax law that will allegedly target U.S. tech companies.

This combined and unsettling news was enough to increase fear and tank the markets across the board to as much as a 1.4% dip on the S&P 500 until some bargain hunters came in and allowed the markets to bounce. The S&P 500 ended the day down -.66%, the Dow Jones Industrial Average ended down -1%, the Nasdaq Composite ended down -.6%, & the Russell 2000 was off -.3% at the close of trading.

Fear rose overall as the Vix jumped as high as 20.7% today and closed at $77.24/share up 12.43%.

Economic Reports

On Monday, the ISM Manufacturing Index report for November confirmed a 48.1% reading vs. a 48.3% reading for October still south of the Mendoza line for expansion. The total construction spending report showed a decrease of -.8% month/month in October.

On Tuesday, we did not receive any economic reports of significance.

Investing & Inspiration

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – Warren Buffett