Fall of the Global Stock Market

It seems like the worldwide effect of the continuous decrease in oil prices due to oversupply and decreasing demands especially in Europe and China has taken its toll on the stock market in all regions. The European stock exchange fell down to a 15-month low, the Dubai market closed to a 28-month low, this is the lowest fall of Japan stocks since October 2014. It is said that the current market situation isn't expected to be the same as the 2008 down fall but the prediction within the next three months is a negative one. Here's a link to the latest update on the world market:

http://www.bbc.com/news/business-35362397

 

From what I had read in one forum, the ploy of Saudi Arabia in producing oil excessively is to exhaust their oil supply while oil is still in fashion. It seems that Saudi Arabia is afraid that oil will be obsolete soon. Now it is understandable for the world market to react negatively or should I say to have a bad side effect which is the plunging of stock prices particularly those connected to crude oil.

 

It is either that, or they are no longer able to sell it for the same rate as they did before. There is speculation that Russia and China are in Syria for far more than meets the eye, and whatever they may have found there is increasing value in other areas while decreasing the value of oil from Saudi Arabia. It's been said that there are now oil alternatives and that Saudi Arabia is losing their hold on it. Not sure if that is the case completely, but it sure seems like it with the recent drop on oil per barrel.

 

I'm really puzzled as to how there could be an over supply of oil when in other countries like mine, oil prices are still playing almost at the same old price it had last year because the demand here is still pretty high. I guess the emergence of electronic vehicles especially in highly urbanized countries have also affected the decrease in usage of oil in the automotive industry.

 

5 years ago NO ONE was calling for a world-wide slump in commodity prices.
I recall one young Canadian analyst saying it would be "the decade of the resource."
Just goes to show you that market predictions are almost impossible in the grand scheme of things.
The global slump in equity value has hurt a lot of investors, but these low prices are great buying opportunities.
As well low prices on the consumer side of things helps in a different way.

 

China's industrial economy has slowed, reducing their demand for oil. The global oil production is excessive -- http://www.bullmarketboard.com/thre...s-with-oil-production-impacting-US-production -- and since that thread was started, the lifting of Iranian sanctions adds more Iran barrels to the glut. The market manipulation -- http://www.bullmarketboard.com/threads/5937-China-s-probe-of-market-manipulation -- and the combination of the PBOC pushing QE measures to prop the yuan (and failing) and the low oil prices continues the global markets' froth and decay that really came to the forefront last August.

A number of pundits suggest 2016 will be bumpy and growth will be limited to ~2%. We'll see. I'm standing pat with my dividend payers rather than churn the accounts.

 

I'm just wondering whether we'll be still talking about many, if any, of these stories in 5 years time. There's plenty of noise going on at the moment but unless it's structural I'm not really bothered about the long term impact on the markets. There will always be reasons, genuine or not, to sell off a market. I wouldn't jump into the market two footed at the moment but I certainly wouldn't be running for the hills either.

 

I'm actually quiet jittery at the moment when it comes to my investments since I know everything's on the negative side right now by I'm also optimistic on the other hand when it comes to buying because I know this is really a good time to buy good stocks and shares.

 

I hate the Dow. It's such a limited slice of the US capital markets.
Ignore the dow.