Amazon does have a bright future, however, the stock has been well ahead of current performance for quite some time. I think the pullback just brings its valuation to more reasonable levels. Look at other tech that got pulled down in the draft for now. With tech slammed, the market doesn't look too great because there is not many other places for growth that are big enough. There will be some growth in oil, some in medical bio-med although valuations are high here too, and some in robotics. However, these sectors aren't big enough to hold up a weakened tech market.

Basically the market would like to rotate but there isn't much to rotate into.

Are prices being affected by trade war worries?

The market is consolidating on the downside and after it is over it will look for progress on the upside. When the trade war issue subsides as well as attacks on tech like Amazon things will look better. Tech weakness is particularly bad for the market right now because it's already very richly valued, was a dominant market leader, and was the major growth driver where there was little growth already.

Tech is not dead. Just the high flying key tech companies are mainly overpriced and it is showing.

I think the Federal Reserve got scared about the trade issue and wants to create a cushion in case there is too little demand for their rising tide of debt offerings.

Agreed. I don't know how they are doing such things and it should not be in their agreement if they do it that way.

This downturn is still mild in comparison. The main issues is what could happen more that what is happening. Indeed a major trade war is something to be aware of and the selloff seems to be adequately reflecting the issue. It is not a panic or illogical selloff by any means. Who knows if it will become more, but right now it's not a time to dump but be selective in buying companies with a strong balance sheet over companies with weak ones even if they are suppose to grow rapidly.

Sadly the trade wars are premised on the wrong thing. Importing low margin products keeps inflation low and is base products for higher margin goods that the US sells elsewhere. For instance, bar shoes from China and the high end margins on Nike which are sold throughout the world disappears. Sadly, a full on trade war may create others complaining of the US dominating all the high margin businesses which is handily does. Is this fair? Yes, for the same reason China dominates low income production because it imports tons of low income stuff and assembles it cheaply and efficiently and skirts environmental concerns.

If we get into tit for tat things erode rapidly. Also sadly US farmers may be the biggest losers because it is clear and obvious the US government subsidizes them which is the argument for tariffs by the US usually to China and elsewhere. In the end, protectionism decreases efficiency, increases inflation, causes wars over resources because key resources instantly become unavailable for some, and it slows economies even into negative growth which is why it has been the harbinger of global recessions and depressions. Last, it may end the cuddly relationship which funds our ever expanding deficit and enables the US dollar to be the global reserve currency which is already coming under increasing threat. This would lead to even higher interest rates, slower growth, inflation, shortages, and decreased purchasing power.

I am hopeful this does not happen, however, one needs to look at and consider the real potential outcomes of the trade war being brewed. My suggestion, get into stocks that have low debt and positive cash flow and out of stocks with high debt and negative cash flows unless they are in an industry that will do well with rising inflation (which are very few industries mainly oil). The US exports oil, but is still heavily dependent on foreign oil despite what some say.

Do not give your information to anyone and do not let your kids use this without observation and regular review. Sadly, it seems a lot of apps target kids. Facebook needs is not responsible for people willingly giving up all their information to others, but it should do its upmost to prevent it and to make sure people are adequately warned about what they are doing if not blocking most apps that do such things. Apparently they have known about these activities for a long time.

Western Digital hasn't been a superstar but has clearly benefited from the tech run up. I agree with the author that there is little in the way of market catalysts to drive revenue and growth from here.

Sadly the author is right. Debt really comes to a head when either no one will buy it or when maintenance fees are so high the country is unable or unwilling to pay it. That said, we are still far from a collapse, but continuing to move towards an inevitable one due to our constant pursuit of short term stimulus.

Recent government stimulus has offset Federal Reserve mild tightening. What we may get is adverse effects from trade wars more than effects from monetary action. Few people realize the tremendous gains we have gotten with global trade. The trade deficit is a poor an inconcise way to look at who benefited from a trade relationship. We have gotten lots of goods and services at low prices contributing to economic gains with low inflation for decades. Our economy has grown faster than Europe, we have globally financed massive federal deficits for decades, and we have shifted countless tons of pollution (a lot of toxic semiconductor waste included) to Asia. Reversal of this will lead us in the opposite path and, worse yet, Asia and Europe are increasing their trade relations. For our sake I hope we reverse further damaging our global trade relations. It is, in fact, damaging ourselves more than anyone else.