Why The Dow Plunged 500-Plus Points
Global stocks sold off Friday, with the Dow Jones Industrial Average plummeting more than 500 points — its ninth-biggest point drop ever — to lose 1,000 points for the week. U.S. stocks closed sharply lower following volatile trading in Asia and Europe after China revealed new evidence of a sharper-than-expected economic slowdown. The sharp losses sent…
17 responses to Why The Dow Plunged 500-Plus Points
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Budda August 23rd, 2015 at 08:16
If the “market” drops 20% it is time to buy agressively….
mea_mark August 23rd, 2015 at 08:50
Maybe, maybe not. This article may have you thinking otherwise. http://www.marketwatch.com/story/dow-5000-yes-it-could-happen-2015-08-21?link=MW_popular I would very careful about investing right know, an overvalued market and the Chinese government lying about their economy is a potential disaster.
rg9rts August 23rd, 2015 at 08:56
You hit it on the head…the chinese are the unpredictable factor in the equation…they have shown that they don’t realize the consequences of their artificial manipulation of the economy…how many years has there been a call for the chinese to let the Yuan float and reach its real state in the world economy?
mea_mark August 23rd, 2015 at 09:06
I think the Chinese are still lying about the strength of their economy. There are indications it may be a bubble bursting. Some things you just can’t hide. Energy use is one. See this article for more info http://wolfstreet.com/2015/07/23/china-electricity-consumption-growth-drops-to-30-year-low/
rg9rts August 23rd, 2015 at 09:17
They have their housing bubble too….it was said a long time ago No One can sustain 10% + growth rate for too long. …They use electricity the same way we use trucking stats to see how busy the economy is…Ironically the UAW is on the warpath because GM want to make Buicks in China for export to the US
mea_mark August 23rd, 2015 at 09:24
Yeah, you only need so many empty cities. At some point they are going to have to quit building cities without demand. Actually I think that is what is happening now. They may have learned that they can’t fill up these cities as fast as they thought they could. Lies, incompetence, market manipulation and corruption are making investors very nervous about China.
rg9rts August 23rd, 2015 at 10:11
Capitalism isn’t as easy as they thought….simple physics…for every action….
Budda August 23rd, 2015 at 09:56
These “market” prognosticators (sp?) Are usually wrong. If the economy goes that far south we’re all screwed
mea_mark August 23rd, 2015 at 10:04
It is worth considering. A correction in the market is overdue though and the real question is how far will the adjustment go if people start panicking, which is often the case. Also, a market collapse doesn’t necessarily mean a collapse in the economy. It used to be that way but I think the economy isn’t as hinged to the market as it used to be. The market is more a speculators game than a true gauge or reflection of the economy.
Budda August 23rd, 2015 at 10:27
I hear you and there is wisdom in what you say. Speculators do move the market but investors stay the market…long term vs. short. Broad indexed funds don’t move as volitally as individual stocks. If you’ve invested well, stay the course.
mea_mark August 23rd, 2015 at 10:29
All things are cyclical. If there is a crash, there will be a surge afterwards. It is the panic and fear that gets most investors in trouble.
Budda August 23rd, 2015 at 12:08
Two things move the market; greed and fear.
mea_mark August 24th, 2015 at 09:38
Oouch …
Budda August 24th, 2015 at 09:50
I’m watching…managed funds are triggered to go more agressive at 20% drop
rg9rts August 23rd, 2015 at 08:49
This was China from the get go…they propped up the Yuan and the stock market artificially and everyone knew it…but the almighty money machine plunges headlong into the abyss because the greedy ones are positive it won’t happen again…It’s not just Wall Street…the greed is reflected in the markets world wide
Tommie August 23rd, 2015 at 12:33
The stock market is a hard way to make cash unless you really know what your doing or like some famous and regular people who get in trouble for inside trading, which i know happens all the time, me personally i make better money going to mexico and betting on sports!
William August 23rd, 2015 at 14:31
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