U. S. Stock Market Correction Not Made In China

[senheiser]

 

[senheiser]

meanwhile Japanese stock-market still hold strong

china

lol US

uk

it has nothing to do with china but western markets collapsing

@Nihonjin1051

Stock Market - Countries - List

 

[Aepsilons]

Definitely yesterday's DOW drop of 500 points sent shocks throughout the market. Most of assumptions are holding that it is due to the recent Chinese market rout, and the effects it has on economic partners. We'll see.

I'd like to hear the input of Sir @LeveragedBuyout , however.

 

[senheiser]

Definitely yesterday's DOW drop of 500 points sent shocks throughout the market. Most of assumptions are holding that it is due to the recent Chinese market rout, and the effects it has on economic partners. We'll see.

I'd like to hear the input of Sir @LeveragedBuyout , however.

so why isnt Nikkei dropping? its holding very high, trade wth japan is bigger

 

[Aepsilons]

so why isnt Nikkei dropping? its holding very high, trade wth japan is bigger

It has actually. In fact the recent Chinese rout affected Japan's output this month. So what affects them , affects us. Japan and the USA being China's top two trade partners.

 

[LeveragedBuyout]

Definitely yesterday's DOW drop of 500 points sent shocks throughout the market. Most of assumptions are holding that it is due to the recent Chinese market rout, and the effects it has on economic partners. We'll see.

I'd like to hear the input of Sir @LeveragedBuyout , however.

China is certainly having an effect, for the following reason: in a correction, when one is prohibited from selling certain assets (e.g. Chinese stocks), one sells whatever one can. In this case, commodities and non-Chinese stocks, which have both taken a hit this week.

That said, I must agree with our friend @senheiser that the US controls its own destiny for the most part, and what is driving the US market is mostly due to internal factors. To get to the point:

Notice S&P 500 revenue growth in the top right corner is negative, driven by the collapse of energy and materials. The oil price collapse, and its impact on fracking, have had an outsize effect on US revenue growth, pulling down the entire S&P 500.

Revenue is more important than earnings, because revenue is much harder to manipulate through accounting tactics (e.g. cost deferrals, share buybacks, etc.), and thus revenue-driven earnings growth (or lack thereof) is considered to be a much better indicator of the underlying corporate/economic condition.

The imminent Fed rate increase for the first time in more than 7 years is also causing some nervousness, although that appears to be off the table for the September meeting, according to the consensus.

Finally, seasonal factors come into play. The third quarter often shows market weakness as institutional managers take vacations and liquidity dries up, thus increasing volatility.

 

[cirr]

After 7 or 8 years of zero interests，the US economy is still in a sh1t hole。

If the dollar were not the de facto reserve currency，the US economy would have found itself in the bottomless pit known as depression。

Sell，sell，sell！

 

[Faiez]

After 7 or 8 years of zero interests，the US economy is still in a sh1t hole。

If the dollar were not the de facto reserve currency，the US economy would have found itself in the bottomless pit known as depression。

Sell，sell，sell！

USA wasn't born with the dollar as a global currency. They worked hard to make it. And they're working hard to keep it going. As far as US economy being in $hit-hole, the gdp growth rate has been positive.

 

[opruh]

USA wasn't born with the dollar as a global currency. They worked hard to make it. And they're working hard to keep it going. As far as US economy being in $hit-hole, the gdp growth rate has been positive.

american gdp growth rate is a $hit-hole compare to China's.

 

[Faiez]

american gdp growth rate is a $hit-hole compare to China's.

America has like 1/5th the population. Americans have roughly 10 times the buying power. They can do with a small gdp growth every year. Right now china is where USA was in the 60s.

 

[Hamartia Antidote]

After 7 or 8 years of zero interests，the US economy is still in a sh1t hole。

If the dollar were not the de facto reserve currency，the US economy would have found itself in the bottomless pit known as depression。

Sell，sell，sell！

China's stock market, Shanghai Composite, loses 8.4 percent in hours - Washington Times

 

[Hakan]

In the 2008 September financial crisis the Dow dropped 777 points in a single day

Today the dow plunged 1000 points but later recovered to dropping 300 something points

Other global stocks are down

As of 10:41 a.m U.S time the Dow Jones is down ~2.11%

Stock Market Turmoil: Dow Plummets More Than 1,000 Points at Open - NBC News

Please let gold prices go up!!!!!!!!!
Actually let me get married first then go up
Quick everyone find a wife before gold goes up

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Central banks around the world have had the printing presses running at full speed for a while now.

 

[VCheng]

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[senheiser]

China's stock market, Shanghai Composite, loses 8.4 percent in hours - Washington Times

and you lost 20%