Markets - Minor Correction? (Edit: Question Answered)

jamei305

Nikkei futures are down nearly 5% for tomorrow, as is much of Europe so I expect it will be a turbulent week.

talexuser

John464 said:

If output is lost. products become scarce and prices rise - so other companies benefit. 

So I'm hoping there will be winners to balance out the losers in my index funds.

Now, that's what I call optimism.

Thrugelmir

DairyQueen said:

The US market is interesting. The FAANGs have been hit relatively hard:
Facebook -5.25%
Apple -4.11%
Amazon -4.43%
Netflix -3.79%
Alphabet -4.48% 

Relative to:
Dow -3.43%
S&P 500 -3.51%
Nasdaq -3.75%

Those with a diversified portfolio (most of us, I hope) will be pretty sanguine. Those with direct, concentrated holdings in the big US techs may be a tad more interested. 

For companies such as Apple, not only do they manufacture in China, it's one of their biggest markets. Alphabet and Facebook derive revenue from advertising and marketing spend. In times of downturn this is often one of the first areas of spend that gets cutback by companies. On top of which there's the high p/e ratios that they trade on. Markets hate uncertainty. 

Thrugelmir

talexuser said:

John464 said:

If output is lost. products become scarce and prices rise - so other companies benefit. 

So I'm hoping there will be winners to balance out the losers in my index funds.

Now, that's what I call optimism.

Be interesting to see the interconnected relationships that now exist in this global world. 

Doshwaster

Yikes, Just logged into my HL S&S account. That's the biggest one day fall I've seen in a long time

LHW99

I would want rather more of a pull-back to get me interested in adding to my holdings.Happy to sit back just now.

NedS

Well, my gilts did really well today

As per Mr Buffett, I did get a little greedy as others got fearful, and took a little punt on RDSB as the 8% dividend yield was just too good to pass up for my income portfolio. I'm planning on adding more equities if things deteriorate further.

MarkCarnage

If this is the biggest one day fall you've seen, you haven't been around for a long time.
Corona virus may be ascribed as the reason, but it's perhaps more accurately described as a catalyst.....
...a catalyst for realisation that there is little left in the tank of central banks, and that sooner or later there has to be some realisation that the over-leveraged world has to recalibrate. 

DairyQueen

I note that the UK and US have (so far) taken less of a bruising than mainland European markets and that Asia (with the exception of S Korea) has barely sniffed.

It's only Monday so who knows what's lurking in the wings. 

Username999

SPX should close the gap at 3328 before the real drop, IMHO.