I have noticed that many stocks are on the downward spiral again right now and can't seem to come up with a reason for it. Does anyone have any ideas as to why the stock markets are not going very well right now? I was just looking at my retirement investment accounts and it looks like things are down about 5% right now. Do you predict that this trend will continue?
Rosyrain, the traders on CNBC Fast Money (5 pm EST), also on SiriusXM, have been discussing the markets and the global contagion -- think mostly China and oil -- at the start of the daily show. All three business TV networks and most brokerage web sites cover the evolving stories including the outlook for 2016. Look through the headers on this board. HTH.
China's stock market is taking huge hits recently. This has affected markets across the world. The business world rushed to China with open arms, and is now paying the price for being so intimately intertwined with such an unstable economy.
Some "analysts" seem to think that the Fed is to blame for the Turmoil in the U.S stock market but I believe that the oil rout has more to do with it. You can take a look at their article below: http://www.globalresearch.ca/the-federal-reserves-insidious-role-in-the-stock-market-slide/5502454 The Fed’s commitment to begin a cycle of rate hikes (aka–“normalization”) threatens to throw the financial markets into reverse which will slash stock prices to levels that reflect their true market value absent the Fed’s support.
Low oil prices should theoretically raise industrial production, which should in turn boost confidence, or at least the stability of, the markets. But this isn't happening, which points to there being something more fundamentally wrong with the world economy than we're accounting for just now. It isn't looking good.
Lots of things going on these days. Short term volatility is the price you pay for longterm stock market investment performance that is above what you'd get from deposit accounts and investment grade fixed income instruments. Be diversified, keep some cash onhand, dollar cost average, buy a little more in bad times, take a little off the table in good times, and consider an asset allocation strategy to dampen volatility (both up and downsides) if you have a hard time tolerating short term declines in markets and individual investments.
It is basically three things, China, Oil, Profit-taking Occasional pull-backs are normal when the market has gotten ahead of itself. The market has had a really good run the last few years, and many of the companies that are getting hit the hardest, like Apple, have had an amazing 7 year run. So instead of saying Apple is down 25% in the past two months, think of it as Apple is now ´only´ up 300% in the last 7 years. I think China and Oil have just given people a pause, and time to notice that a lot of these stocks have done really well the last 7 years and now is the time to lock in profits.
I heard yesterday on the news that the low oil prices are what is driving the stock market down. This is what I do not get about the stock market because you would think low oil prices would lead to more people spending more money on other things in life and that this would drive the stock market up. It makes no sense to me. We are drilling more oil than ever before and are less dependent on oil from other countries. I try to follow this stuff and learn about it, but it all seems crazy to me.
Well, the oil prices are definitely part of it, as is China's economic downturn. I think other people in the world get nervous when China is on a downturn. It tends to affect markets globally. People in the European and American markets get nervous and the stock market tends to fall.
