The latest news on the global market reveals that worldwide stock indexes plummeted on Monday while Treasury yields hit their lowest in a year. The latest report from Reuters shows the recent values on companies that some of us here might have in our portfolios. It is said that until oil is not stabilized, we can still expect a continuation of market down fall worldwide. Here's the latest from Reuters: http://www.reuters.com/article/us-global-markets-idUSKCN0VH018
Investors are panicking and dumping stock because there's been a lot of fear-mongering [re: the bear market is here]. This I believe is one reason why stocks are falling. Smart investors can profit from all this — buy some stocks that have been beat down, hold them for just a little while . . .
I also think that the smart and risk taking investors could benefit well from this crisis once it's over. If they buy good stocks now while they are still low, chance is a good ROI after holding them for a period of time.
The fall in shares has hit the investors hard in my country. All three major indexes fell more than 1 percent as investors looked for safe havens after China allowed its currency to weaken further and oil prices fell to their lowest in more than 11 years.
On top of all this, global investors are waiting until the end of election season to start spending money again. Whether it's the US investors, investors in Asian countries, the Middle East, or anywhere else, people are just holding back. The economy slumps and ends up in a position where everyone wants to see what the next person or next election result will be before they start picking up the flow again. Is it just me, or is it always like that the final year of a term before a new election and a new president is selected in the US? Understandably this is a global consideration, but I've noticed the same happen whenever there is anticipation for a new president, chancellor, prime minister, or other form of royal election happening soon.
Well I know that some people are really sounding an alarm, but I always like to hear more from those more rational investors who offer explanations and assure us that the market will bounce back. I am one of those people who always fears for the worst, but really knows that the law of averages just seems to play out, but when it comes to stock market I especially get worried that all my money will be gone one day.
I believe that the slump of stock prices is related to the price of oil in the world market. It's a complicated thing but there is a chain reaction since earnings from oil are also invested in other stocks hence those stocks are somehow affected. It has been said time and again that Saudi Arabia is halting its exessive pumping of oil to lessen supply and increase the price. However, it looks like loose talks only because just today the price of gasoline and diesel were slashed by more than 1 peso per liter.
This shows how big the impact of the US election and other powerful nations' change of rule when it comes to business and the stock market. Investors also weigh their odds depending on the results of major elections because the person who wins have a big role in the rise or downfall of stocks according to how people trust them.
