Dow Jones down 4.6% - Worst fall since 2008

triathlon

Graham_Devon wrote: »

So basically good economic data is seeing stock markets across the world fall due to a fear over cheap money and emergency rates coming to an end.

Will prove we all got hooked on cheap money and low rates, if nothing else.

And dare I say it, which of course will lead to YET ANOTHER property crash. How many is that now?

triathlon

ChopperST wrote: »

Will be interesting to see what the bond markets do. The reasoning for the correction is higher interest rates over the next 12-18 months which would mean that bonds would be less attractive also?

We all knew that anyway, but a few 0.25% rises in the next year are so is hardly going to crash the UK housing market, and remember we still have 300,000 plus immigrants entering the UK yearly, and will continue to do so, they need housing somewhere.

Filo25

triathlon wrote: »

We all knew that anyway, but a few 0.25% rises in the next year are so is hardly going to crash the UK housing market, and remember we still have 300,000 plus immigrants entering the UK yearly, and will continue to do so, they need housing somewhere.

Did I miss someone saying it would on this thread?

ChopperST

Filo25 wrote: »

Did I miss someone saying it would on this thread?

My thoughts exactly...

triathlon

ChopperST wrote: »

My thoughts exactly...

It's insinuated on 100% of the posts by a small group of regulars, don't pretend it isn't

Prof_Green

FT100 on the slide, but drop, recovered, fell back recovered, falling back now.

Down to 7150, initial drop was to 7120, but got to 7225 before declining slowly again.

Maybe back on a slow rise again, is it a just like a roller coaster, with the big drop at the start.

Now 7159, anyones guess where it ends up, seem a nervous market, sell, buy, sell, no buy!

More fun to come currently 2.4% down on the day.

Graham_Devon

FTSE, so far, has held up remarkably well to be honest, especially considering DOW futures are showing a futher decline on open.

heard one interesting comment earlier today (though it is just one comment from the city). They don't believe this will turn into anything as investors genuinely believe government will step in and calm markets, mainly through a reversal on policy over interest rates as "the stocks have shown what is likely to happen".

So still a keen reliance on "it won't be allowed to fall" and 25% annual gains becoming normalised and expected.

Read share boards and the sentiment is similar. Can't really blame anyone, we've had 10 years of pretending.

michaels

Filo25 wrote: »

Bond movement was interesting, 10 year yield rose considerably during January (almost unnoticed it seemed), actually fell back yesterday presumably some selling of equities and rotation back into bonds.

Those of use who can't remortgage till October have been very aware

Prof_Green

Graham_Devon wrote: »

FTSE, so far, has held up remarkably well to be honest, especially considering DOW futures are showing a futher decline on open.

heard one interesting comment earlier today (though it is just one comment from the city). They don't believe this will turn into anything as investors genuinely believe government will step in and calm markets, mainly through a reversal on policy over interest rates as "the stocks have shown what is likely to happen".

So still a keen reliance on "it won't be allowed to fall" and 25% annual gains becoming normalised and expected.

Read share boards and the sentiment is similar. Can't really blame anyone, we've had 10 years of pretending.

What goes up must come down, thing is the FT100 did not go up much up much, it is not far off where it was 18 years ago, and that is before inflation. :rotfl:


You can't calm market really and you shouldn't.

triathlon

Graham_Devon wrote: »

No real indication as to why though on the BBC.

Any thoughts? Seems people are guessing more than giving any reason, with "interest rates climbing higher" as one reason given.

Big fall anyway.

Or that it was just in a bubble and made too rapid a gain and just needed to correct a little. But looks like it is not correcting all that much because as I type it had recovered slightly