3 Reasons Not to Panic Over the Stock Market Plunge

time.com/money ^ | 1-7-2016 | Paul J. Lim

[PIF]

The

1) The same chain of events occurred last summer - and stocks survived.

2) Oil prices that have contributed to the sell-off can contribute to a rebound.

3) China’s sell-off may have as much to do with policy as the economy.

[Pilgrim's Progress]

I panicked. I jumped out of my window. Good thing it is one the first floor.

[cpdiii]

The market has been very good to me. Since September I have been in nothing except short term Treasuries and bonds. They have been good to me also. I did not make much money but I sure as hell did not lose a lot.

[Southack]

Oil gets a new supplier as Iran fills and sends out oil tankers this month (Obama nuclear deal lifts sanctions).

[taxcontrol]

#4 - after the last round of lay offs caused by the Obama recession, I had to use my retirement fund to stay afloat till I could get back to work .... so I don’t have any stocks to worry about

[Old Yeller]

Cheap oil has basically turned off the oilfield hiring and technology investment. Overall it has hurt the economy.

Just like Obama intended. Punish US oil producers.

He killed the coal industry, next oil, and then natural gas.

[Oatka]

And in other news: Down Again: Baltic Dry Index Tumbles to New Record - 467 Points

Index tracks bulk shipping (ore, grain) around the world.

Graphically, it look like this:

[wardaddy]

It’s not an historically terribly volatile currency but I do agree they are so dependent on exports

And this continual slowdown coupled with their unprecedented growth and expenditure

Contraction

I should look at it

[Southack]

Record number of short sellers in Hong Kong and Tokyo this week.

The weird part is that as an oil importer, China should have been benefitting from cheaper oil.

Where it would get really rough for China is if they achieved “low prices” not through cheap labor, but through selling products at losses all of these years.

It would be dramatic to see decades of book-cooking implode almost overnight.

...but while a possibility, I’m not stating that as a fact. Just a consideration.

[Southack]

One global problem with shipping is that the industry built up for massive LNG exports via overseas freighters to the USA.

Then USA oil fracking achieved scale and instead of importing natural gas as LNG, the USA is exporting a little LNG, instead.

Taking 16% of the global buyers out of the equation was a nightmare reversal for the shipping industry...which is an industry that has an enormous lag time between orders and deliveries of new vessels.

Disruption.