Equity markets having a hard time finding any kind of bottom. Global equities now below where they were a year ago and US equities heading there quickly. Wouldn’t be surprised at a flash crash one of these mornings.
Weird to use cents as your unit of measurement.
You haven’t a clue pal. Stick to weekend warrior shit and go fuck yourself. Twat.
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We are now officially in correction territory, all US indexes >10% down from their high. Global equities down 15% from the Jan high. This is the beginning of the end.
A badly needed correction. ''Twas gone mental sure
The only question now is whether this is a correction like February or a bear market. My money is firmly in the bear camp. When good news like a GDP print of +3.5% is bad news, the party is over.
Interest rate hikes are badly needed though or they’ll have no wiggle room to act during the inevitable next economic crisis. The Eurozone is absolutely bollixed if it goes south in the next few years as I can’t seem them raising rates in the near term.
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So you’re saying they should hike interest rates to fuck the economy, so they can lower them again to try and unfuck it?
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US economy is going to over heat if they don’t hike rates soon. If it hasn’t already. And if they overheat it and it blows up at these interest rates they are absolutely goosed
How does this affect Limousin Heifer futures?
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It’s definitely gotten very panicky but I’m not sure there’s an issue of substance that you could hang your hat on re: a bear market. The dot com bubble had tech company bubble/overvaluation and 2008 had sub-prime mortgages/dodgy lending. Is there something similar this time? It’s hardly Brexit or US/China squabbling?
Limousin Heifers futures are always bleak
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You have to discount 2000 as valuations were meaningless when many of the Internet stocks had no earnings. Equities are more overvalued by all metrics (the CAPE ratio is the best) now than 2007, you have to go back to 1929 to find similar levels. The primary argument for a bear market is that we have passed peak earnings for this cycle, and with interest rates rising a lot of companies will struggle to pay their debt obligations (which was largely used for stock buybacks).
That’s the history of central banks, blowing and popping bubbles since 1913.
Yeah - I don’t agree with that. Why for example is tech getting walloped when it’s mostly debt free?
Tech is by far the most overvalued, so if earnings for this cycle have peaked that segment will fall the hardest. Amazon and Alphabet are both getting hammered today as they lowered their sales guidance for the December quarter. If Apple disappoints, I would stay well clear of the Nasdaq for a while. The three biggest issues facing Tech are sales / earnings peaking for this cycle, China meltdown which could turn really ugly, and increased regulation mainly in Europe.
As for debt, I’m talking about the broad market, only 10 of the 500 companies in the S&P 500 are debt free and the S&P by and large represents the most healthy companies.
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We’ll scoop up another couple of houses KP when this bubble bursts.
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Amazon lowered guidance - Alphabet didn’t.
Alphabet missed revenue by growing it 21% q/q instead of 22% or so - hardly the sign of a company in trouble.
I don’t think China or Debt is a factor for either.
Alphabet are on track to be almost 15 p/e next year ex-cash - hardly grossly overvalued for an actual growth stock.
Basically a lot of (American) people have got their knickers in a twist and are retro-fitting fear factors imho. Markets are due a correction, not a crash.
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Christ, it’s like sitting in a HR meeting or a corporate box at the ore.d.s reading some of this management joregon.
I’m determined to insert “retro fitting fear factors” into a work conversation this week.
I did the same with “hopping like sausages in a pan”, but that term has been adopted and is being widely used now and has lost its entertainment value.
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Try “have you considered shoving your thumb up your hole”? the next time.
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