[Finance] Dow Jones biggest ever daily points drop

[nicko31]

Just a week ago the orange man was bragging about record highs. Hold onto your hats we're in for a choppy ride

 

[larus]

Just a week ago the orange man was bragging about record highs. Hold onto your hats we're in for a choppy ride

Here comes Mr Panic.



Yep, lot’s to worry about (not). Markets have got ahead of themselves and have had a correction. Market volatility rarely impacts ‘main street’. This is purely an adjustment to the fact the the American economy is STRONG and there is an increased risk of inflation and wage hikes. Which, considering the length of the recovery since the 2008 crisis is long overdue.

We have been living in strange times for monetary policy (QE, negative interest rates), so anything which is a step towards normality should be welcomed. But, some Chicken Littles will always think the sky is falling.

 

[Westdene Seagull]

Just a week ago the orange man was bragging about record highs. Hold onto your hats we're in for a choppy ride

I'm surprised you haven't blamed it on Brexit - every other negative financial news you have. As per usual though, a complete lack of financial understanding.

 

[seagullsslimjim]

Long term chart showing 22k for the Dow.

All about inflationary concerns

 

[brulee]

Markets always overreact. Dow will go lower than 20000

 

[Tom Bombadil]

Looking at the charts it would appear that the dow has become overheated in the last 12 months and now the market is correcting. It's just the usual inefficient pattern of under regulated markets.

 

[Ninja Elephant]

This whole story is fake news!

 

[vegster]

I'm surprised you haven't blamed it on Brexit - every other negative financial news you have. As per usual though, a complete lack of financial understanding.

Brexit won't affect our economy, remember in 18 months time I'll be earning a small fortune picking cabbages

 

[knocky1]

The near 1,579 point fall was the biggest on the Dow but it recovered a third and in terms of percentage falls was run of the mill not massive. It was the biggest drop for the Dow since we allowed the uneducated to vote on the economic prosperity of the U.K.
Time to remortgage. Rates are going one way.

 

[daveinprague]

Didnt hear the usual suspects declare the very good results recently in the same manner. Cant understand that. Oh wait.

 

[larus]

The near 1,579 point fall was the biggest on the Dow but it recovered a third and in terms of percentage falls was run of the mill not massive. It was the biggest drop for the Dow since we allowed the uneducated to vote on the economic prosperity of the U.K.
Time to remortgage. Rates are going one way.

Which will be a good thing. Interest rates being too low are not good for the economy and are a sign of an underlying weak economy. Of course, high interest are bad, but this shows the other extreme where inflation has run away. If interest rates start tho rise, this will likely be because there is wage inflation coming through, which is long overdue. No doubt though, the usual suspects will bleat about this being the fault of Brexit (as per any other price of economic news which they can spin - unsuccessfully usually though ).

We’ve had 10 years of ‘exceptional’ monetary policy: QE and low or even negative interest rates. The only ones who have gained from this are those with capital and assets, as we’ve had asset price inflation. This has impacted the poor/young much harder.

Personally, I’d welcome a house price correction (not a crash, but a gradual decline to ‘sensible’ levels - I realise that this is subjective anyway). To me it’s always been insane that people think they are getting wealthier because the value of a bunch of bricks is going up increasing. Wealth should be earnt by work/risk taking. A house should be a home and not an investment vehicle.

 

[nicko31]

The near 1,579 point fall was the biggest on the Dow but it recovered a third and in terms of percentage falls was run of the mill not massive. It was the biggest drop for the Dow since we allowed the uneducated to vote on the economic prosperity of the U.K.
Time to remortgage. Rates are going one way.

Yep the end of cheap money is coming, 4-6 rate rises expected Stateside in the next 12 months

 

[mothy]

Sad threat alert. #trying to blame something on someone / something alert. Ignore the facts that the drop is brought about by econonic good news & and the 'reaction' is the knock on effect of speculators / professional gamblers doing their jobs

 

[Half Time Pies]

Which will be a good thing. Interest rates being too low are not good for the economy and are a sign of an underlying weak economy. Of course, high interest are bad, but this shows the other extreme where inflation has run away. If interest rates start tho rise, this will likely be because there is wage inflation coming through, which is long overdue. No doubt though, the usual suspects will bleat about this being the fault of Brexit (as per any other price of economic news which they can spin - unsuccessfully usually though ).

We’ve had 10 years of ‘exceptional’ monetary policy: QE and low or even negative interest rates. The only ones who have gained from this are those with capital and assets, as we’ve had asset price inflation. This has impacted the poor/young much harder.

Personally, I’d welcome a house price correction (not a crash, but a gradual decline to ‘sensible’ levels - I realise that this is subjective anyway). To me it’s always been insane that people think they are getting wealthier because the value of a bunch of bricks is going up increasing. Wealth should be earnt by work/risk taking. A house should be a home and not an investment vehicle.

Absolutely this, its crazy that the only people that have benefited from QE and low interest rates are the asset rich where as the less privileged in society have suffered most from Austerity.

We have a crazy debt based financial system geared towards the wealthy and increased inequality which needs a massive rethink.

The monetary policy since 2008 has been geared towards first saving and then benefiting the very people that caused the crisis.

 

[mikeyjh]

Personally, I’d welcome a house price correction (not a crash, but a gradual decline to ‘sensible’ levels - I realise that this is subjective anyway). To me it’s always been insane that people think they are getting wealthier because the value of a bunch of bricks is going up increasing. Wealth should be earnt by work/risk taking. A house should be a home and not an investment vehicle.

Agree with most of this - I would challenge the implication that owning houses that you let out is 'risk free' - I say this as a landlord but it's not 'free money', there are plenty of pitfalls and if you're a 'good' landlord, there are lots of outgoings you're going to have to cover.

Agree on the housing market though, it's mental, our obsession with home ownership ASAP isn't healthy.

 

[BLOCK F]

Ah well, no surprise.
Anyway, I have made one or two modest investments this morning, topping up a couple of existing holdings.
Watch the markets go lower now.

 

[larus]

Agree with most of this - I would challenge the implication that owning houses that you let out is 'risk free' - I say this as a landlord but it's not 'free money', there are plenty of pitfalls and if you're a 'good' landlord, there are lots of outgoings you're going to have to cover.

Agree on the housing market though, it's mental, our obsession with home ownership ASAP isn't healthy.

The problem is too many people got onto the “I can make money by buying a flat and renting it out” bandwagon. I understand why, but a lot of them are making money out of someone else’s situation. I realise there are some people that want to rent for the convenience, but others are forced to by their situation. Too many landlords view it as a way to make easy money as they get the mortgage paid by the tenants and they also get the capital growth. I know things have changed recently in terms of the tax allowances which have made it less lucrative.

I cold also have done that, but I have invested money with a friend to build property. Of course, I want to make money but I feel as though I will be benefitting by increasing housing stock (in my own insignificant way I accept ). However, the planning process is a complete f*cking joke and the (mainly) old/retired people on the planning committees have no training. We wonder why we have issues in this country with housing supply - look at the process it’s antiquated. These people should be trained and at present, they aren’t. I’m not saying the planner aren’t, but they only advise the committee when applications go to appeal.

Also, the costs of rents in this country is criminal IMO. The young have to work to survive.

 

[LamieRobertson]

Ah well, no surprise.
Anyway, I have made one or two modest investments this morning, topping up a couple of existing holdings.
Watch the markets go lower now.

I did that yesterday after Fridays fall

 

[seagullsslimjim]

Its being referred to as the 'Zaha dive' and due to its magnitude !

 

[larus]

Here comes Mr Panic.

View attachment 93888

Yep, lot’s to worry about (not). Markets have got ahead of themselves and have had a correction. Market volatility rarely impacts ‘main street’. This is purely an adjustment to the fact the the American economy is STRONG and there is an increased risk of inflation and wage hikes. Which, considering the length of the recovery since the 2008 crisis is long overdue.

We have been living in strange times for monetary policy (QE, negative interest rates), so anything which is a step towards normality should be welcomed. But, some Chicken Littles will always think the sky is falling.

Thought I’d show the comparison after todays rise. Hey [MENTION=15360]nicko31[/MENTION], you’ve been very quiet since your opening post.