Dow Jones down 4.6% - Worst fall since 2008

Prof_Green

triathlon wrote: »

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

It is all over the place, up and down a proverbial pair of draws. :rotfl:

We are into a bear market imo.

Prof_Green

The Dow is currently 0.5% down.

chucknorris

Prof_Green wrote: »

It is all over the place, up and down a proverbial pair of draws. :rotfl:

We are into a bear market imo.

It is a bit early to be calling a bear market, from:
https://www.investopedia.com/terms/b/bearmarket.asp


What is a 'Bear Market'
A bear market is a condition in which securities prices fall and widespread pessimism causes the stock market's downward spiral to be self-sustaining. Investors anticipate losses as pessimism and selling increases. Although figures vary, a downturn of 20% or more from a peak in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over a two-month period is considered an entry into a bear market.

Thrugelmir

Graham_Devon wrote: »

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".

Investors are then sadly mistaken I suspect. Not the role of Central Banks to bail investors out. Sadly too many people seem to have though this time is different. Though it never is.

Arklight

Well when the FTSE was up a few days ago the Brexit heads were strutting around saying it was a global vote of confidence in Britain. I assume they've just decided it's completely irrelevant after all.

tracey3596

Arklight wrote: »

Well when the FTSE was up a few days ago the Brexit heads were strutting around saying it was a global vote of confidence in Britain. I assume they've just decided it's completely irrelevant after all.

Were they really?
You'll be able to show us where then, won't you?

BTW you did know that the FTSE100 remains higher than pre-referendum and the FTSE250 is still higher than it started the year, don't you?

westernpromise

Generally speaking you know you're in a downtrend when the troughs get lower and so do the peaks. Bitcoin is demonstrably in this mode right now. Equities I would say it is too soon to judge.

Rising interest rates would be a nice problem to have. Labour wrecked the economy so badly this time that it's taken eight years of sensible government to turn the corner. Even now we're a long way from being out of the woods.

One thing that would help is to scrap stamp duty and replace it with a flat-rate property tax based on square footage. This would ensure that someone living in a 1500 square foot house in Bolton would pay the same as someone in a 1500 square foot house in Chelsea. The former costs flumpence a week to live in, the latter costs a fortune, so such a tax would be linked to residual ability to pay.

It would also give northerners back both a stake in the country and some self respect, because instead of everything they have being paid for by the south, they would be making a contribution for once, which would be good for their dignity. It would be genuinely socially inclusive and those who are now just net takers of tax could at last hold their heads up high, because finally they're putting something in for a change after all the years of take, take, take. In fact, Social Household Inclusiveness Tax would be a good name for it.

There are 27 million households in the UK and stamp duty raises 14 billion. The S.H.I.T. would therefore average just over £500 per year per household, so even those labouring under a colossal London mortgage would be able to afford it - and everyone would gain from there being no stamp duty when they trade their house in. You could double it on properties in Labour seats, because Labour caused the deficit and should bear most of the burden for the havoc their choices unleashed, plus it will make a chnage for a Labour voter to experience what paying tax feels like as they mostly don't pay any (the rich celebs dodge it through companies). You would levy it at double rate on the owners of empty properties, and on the occupants of properties otherwise, which would ensure empty properties were re-let quickly. It's a winner.

chucknorris

Arklight wrote: »

Well when the FTSE was up a few days ago the Brexit heads were strutting around saying it was a global vote of confidence in Britain. I assume they've just decided it's completely irrelevant after all.

It wasn't because of global confidence in Britain, it was because the pound fell (probably due mainly to Brexit) and because most income from the ftse 100 companies comes from abroad, the value of that income (in pounds) increased.

tracey3596

Moby wrote: »

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Is somebody having trouble?

"Amid Volatility, Sell-Off Eases on Wall Street"

https://www.nytimes.com/2018/02/06/business/dealbook/stock-market.html


It'll take a while before we see whether or not a bear market appears, not just a few days even if it is quite unusual for recent times.


Trust the usual suspects to try and turn a global event into something to do with Brexit.

StevieJ

tracey3596 wrote: »

Is somebody having trouble?

"Amid Volatility, Sell-Off Eases on Wall Street"

https://www.nytimes.com/2018/02/06/business/dealbook/stock-market.html


It'll take a while before we see whether or not a bear market appears, not just a few days even if it is quite unusual for recent times.


Trust the usual suspects to try and turn a global event into something to do with Brexit.

Similar to the GLOBAL Financial Crisis in 2008 being all the fault of the Labour party :-)