Lots of volatility in the markets today, as the Dow started the day down more than 200 points then reversed and made a gain of 39 points to close at 26,486. Tech stocks and the Nasdaq did not fare as well as investors continue to be concerned with rising interest rates, and of course, trade tariffs with China. Bond trading was closed for Columbus Day, so we had a good time imagining that investors sold their equity positions in the morning, then went to the bond department and was like “where is everybody!?”, and then decided to come back and buy stocks again. Tech is also under fire as Bloomberg has reported an attempted chip hack by China that may have affected companies such as Apple and Amazon, and now Google has disclosed that they had a privacy breach that may have exposed account information for 500,000 users. This of course within the same year that Facebook had to answer for privacy issues related to their users.
While U.S. investors are concerned about trade issues with China, tariffs definitely have the Chinese feeling the heat. The Shanghai index lost almost 4% today as foreign investors dumped $1.4 billion of Chinese equities. With a slowing economy, unemployment on the rise, and corporate interest rates increasing, the Chinese government announced on Sunday that it will reduce the reserve requirements for banks. Starting October 15th, banks can reduce their reserve requirement by 1% which the Chinese anticipate could inject about 110 billion dollars into their economy. While an increase of money flow usually decreases the value of currency, China has said that this is not a ploy to devalue their currency and promises to keep the Yuan stable in currency exchange markets.
The scouts had a good time at Andy’s cabin. It rained Friday night as the scouts set up tents but cleared up on Saturday which allowed us to run the rock-climbing station so that the lunkheads could overcome fear and rappel off the 130-foot cliff that we use. We also had orienteering, shooting and a bow and arrow range going. About 40 scouts were in attendance and a good time was had by all. Even some Webelos showed up and shot arrows and BB guns. The scouts cooked their own meals and when the sun went down hosted a camp fire with songs and skits.