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  • A Brutal Week in Markets, But What Comes Next?

    From bloombergview.com

    Investors around the world will be looking to next week with some anxiety as they lick their wounds. A brutal week of losses was accentuated by an unpleasant close for the U.S. stock markets that saw the Dow Jones Industrial Average plunge more than 500 points (3 percent) for the day and taking it into correction territory, or down more than 10 percent from its last high. The losses for the week were accompanied by even larger ones elsewhere, including emerging-market currencies and oil. In assessing what lies ahead, investors would be well advised to consider six major factors that have brought markets to this ... (full story)

I never stop to wonder why the word investor replaces the words speculative stock and option trader.

Person or organization that buys on the stock market to sell at higher price is not investing - it just seek the next fool to sell on. Nothing is produced, grown or established here. Thus - the word investor doesn't apply.

I'm investor, because I'm putting funds in 2 small companies and manage them to grow, not because I put long or short positions on GBP/USD.
"Brutal week of losses"!? :-)

Right :-). I think author with the long Arabic name forgot to mention that there were also winners - the ones that actually sold at high prices :-). It is wealth transfer, not losses :-).
it was a great weak in a volatile markets...pretty punishing for the dumb money
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8 year recession in progress, although we might see stocks recover this week retracing some of the losses, it is going to be the mother of all crashes
Quoting michaelpelly
"Brutal week of losses"!? :-)

Right :-). I think author with the long Arabic name forgot to mention that there were also winners - the ones that actually sold at high prices :-). It is wealth transfer, not losses :-).
It is not necessarily wealth transfer. If you have something that people believe to have the value of $100 but tomorrow no one wants to buy it for anything more than $50 you just decreased your wealth by $50. No one "gained" anything from the decline in value. The same is true in stock markets if no one is buying and you have to keep accepting lower and lower prices value is destroyed not transfered.
Quoting thegmann
It is not necessarily wealth transfer. If you have something that people believe to have the value of $100 but tomorrow no one wants to buy it for anything more than $50 you just decreased your wealth by $50. No one "gained" anything from the decline in value. The same is true in stock markets if no one is buying and you have to keep accepting lower and lower prices value is destroyed not transfered.
But even by definition equity value is bogus value. It becomes real only when you sell. But the paradox is that when everyone start to monetize this value - other's equities start to drop. So the real value is only for those who sell first (first 2% of the sellers). Right? :-). Equity value is not real - only money flow regularly is real wealth.
According to my calculation, we have about an 95% chance that this is the start of a long 2-3 year collapse. If I am correct September will see a brutal decline on the 16th September my thoughts are that we see a massive fall possibly even a 700-800 fall on the S&P on this day.
Quoting Mike Haran
According to my calculation, we have about an 95% chance that this is the start of a long 2-3 year collapse. If I am correct September will see a brutal decline on the 16th September my thoughts are that we see a massive fall possibly even a 700-800 fall on the S&P on this day.
Funny - I was thinking the same this weekend.
Quoting michaelpelly
Funny - I was thinking the same this weekend.
What's significant about this date?
Quoting robertbruce
What's significant about this date?
Nothing he pulled it out of his ass
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The FOMC meets September 16-17. They will likely raise Fed target rate on thev17th.
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  • Story Stats
  • Posted: Aug 21, 2015 10:53pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 11  /  Views: 5,132