Has the dead cat finished bouncing?

Thrugelmir

What's fundamentally changed since a few weeks ago? Good companies keep performing. Others bounce around on the back of speculators.

EdGasketTheSecond

Reality check from FED chairman, virus is back, China offloading US debt, dollar sinking.

Thrugelmir

EdGasketTheSecond said:

Reality check from FED chairman, virus is back, China offloading US debt, dollar sinking.

Virus has never gone away. 

Sailtheworld

Bloomberg talking heads, as usual. have spent the day trying to explain market movements. It's profit taking, it's a 'risk off' day, it's the FED, sentiment has turned, Trump will / won't win the US election etc. etc.

All code for 'the markets are down we don't know why but please keep buying, selling and holding because that's where we make our money'.

BananaRepublic

Some nice big drops today in America as reality sinks in. A 10% fall relative to one week ago would not surprise me. The cat is dead, but someone with a sense of humour filled it with a rubber compound. 

ProDave

What puzzles me, is the HUGE drop in GDP is not a surprise. It has widely been speculated and discussed.  So WHY when is it announced does the market drop?  It seems to confirm my theory that the "market" is completely divioced from reality at the moment.

The question is more "why has the market been rising for 2 months?" not why is it falling now?

Sea_Shell

I am worried that this is now the start of the REAL correction/slump/crash, and the earlier one was just a taster of what's to come.

I might be being overly pessimistic, but the next 3-4 weeks will be really telling, with regards any increase in cases/hospital admissions/deaths.   If they start to really take off again, then we are in trouble, and I can envisage full lockdown again by September/October and the economy to fall off an even bigger cliff!!

I really hope that my worries won't be justified, the cases will continue to fall, businesses can re-open and we can try and get back to normal....proper normal...without having to "stay alert".

Obviously how the US deals/reacts to all this has a massive effect on us here...so lets hope they can get things under control.   But I'm not holding my breath on that one.

Bravepants

Hope for the best, plan for the worst as always.

Alistair31

Rising cases in 20 U.S. states is not good.

Sailtheworld

ProDave said:

What puzzles me, is the HUGE drop in GDP is not a surprise. It has widely been speculated and discussed.  So WHY when is it announced does the market drop?  It seems to confirm my theory that the "market" is completely divioced from reality at the moment.

Beware formulating a theory based on not knowing the answer to a question.