Experts are advised not to panic because of falling markets. And that's why
stock
markets around the world on Monday
We noted a sharp decline. It's horrible.
But before you pick up the panic,
let's look at this event
term. This is hardly the worst day
for stocks. This also occurs rollback
after six years of mad growth stock
market. Experts refute the opinion that
what is happening now - the terrible compared
with past fall. But first things first.
1. It was the worst
fall for shares in October 2008.
The Dow Jones fell
more than 1000 points in early trading.
This has never happened before.
America did not fall as much in October
2008, when the financial crisis was in
full swing and people were concerned
destruction of the banks, especially Lehman
Brothers. The Dow eventually finished the day
decrease by only 588 points - the worst
loss per trading day in August
2011.
2. Yesterday
day was not so bad in comparison
from "black Monday" 1987.
Yes, there was a lot of panic, but the Dow
It fell by as much as 22.6% on October 19
1987. And yesterday - a maximum of 6.16%. If
would it be true "black Monday".
like the one that occurred in 1987, the index
Dow Jones fell
to 3,700 points.
3. Shares
They went up by 200% since the financial
crisis. The shares were not only up, and all
we know that these "American race"
made much experience in many
last years. Stocks rose and the bull
market began in March 2009, for all
this time S P 500 rose to about
220%. A drop in the last few
days "snatched" only 11% of these
achievements.
4. Yes, the stock
the market is now only entered into a correction.
Investors like to throw all sorts of
terms - correction, bear market,
accident. The technical definition of correction
- a 10% reduction from the recent peak.
Currently, the index Dow,
S P 500 and Nasdaq - "greater
American trio" - all in a mode
correction. They reached their peak
Spring and lost more than 10% since then.
Many experts say that in America
urgent correction. It if you want,
natural - such as the need to
sometimes the brakes during
riding a bicycle or car.
5. Oil enlarge
$ 40 and it scares investors. Yes, American
drivers like cheap gas, but investors
very nervous when oil prices
fall too low. On Friday, WTI
It fell below $ 40 for the first time
after the Great Recession. Energy is still
It forms a significant part of the economy
and the US stock market. When prices
Oil slide down, which means that
many companies will not be able to do more
money. It's painful strikes by companies
and countries that are heavily
dependent on oil exports.
6. China has
problem: its economy is growing at
7%. Real panic in the stock market
began last week, when China
made a "surprise" the devaluation of their
currency. Everyone knew that the Chinese economy
slowed down, but the devaluation
thus a red flag that the government
China is very concerned about the state of the economy and the slowdown
growth can be much worse than what we
imagined. And due to the fact that
China's economy - the second largest
?? in the world, investors fear that
halting China can pull down
many other world economies.
7. America is not
at "bear market." bear market
- this is when the stock market falls more
than 20%. This is despite the very bad scenario.
But so far, even with losses on Monday
and last week, the markets have not reached
mark of 20% - the Dow Jones
It fell only
13%.
8. China
destroyed, but not the US. Many love
talk about the "accident" in the stock market.
But even there, the technical definition
accident is not suitable, but people still
use this term when they see
massive fall within several
days. At the moment, rightly
called the accident only situation in
China, where the big sell-off seen.
China fell to 40% from its peak, but
US market went down just
slightly more than 10%.
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