Posted on 10/15/2014 10:08:47 AM PDT by John W
U.S. stocks resumed a decline after shaving early losses on Wednesday as Europe markets closed in the red and weak domestic economic data weighed heavily on markets.
In the United States, transports fell about 2 percent in late morning trade led by a decline in airlines on reports that the new Ebola patient flew the day before falling ill. However, analysts said there were no reports of flight cancellations due to the disease.
"Ebola is in the background," said Peter Boockvar, chief market analyst at The Lindsey Group. "It feeds generally into global growth concerns."
(Excerpt) Read more at cnbc.com ...
Totally agree. Just saying this market was already overvalued even after the 2008 disaster. It is going to take a huge bite to get anywhere near a fair value. You also have to ask if the stock market is rising on inflation, why isn’t copper, oil, gold also rising?
A healthy economy wouldn’t need QE year after year. I wouldn’t be at all surprised to see QE V, or whatever it is, launched in the near future if the economy stays soft and the market continues its slide. Fundamentals in the market no longer matter. All that matters is easy money courtesy of the Fed. That’s what drives the market.
In many respects, the Fed is the market.
In this case they are referring to the recovery earlier today from today’s initial low. Which it has blown past now.
Cause that would be the only recovery we’ve had.
Amen.
Gold is rising today.
Gold is up $8.
Turn on the spin cycle. First blame the sequester. Then blame the market downturn in anticipation of a republican majority in congress.
There never WAS a recovery to fade.
Obamanomics sucks.
Oct. 16, 2014 U.S. stock futures are down considerably half an hour ahead of the 9:30 a,.m. ET opening bell. Dow, S&P 500 and Nasdaq indexes are all off about 1.3% or more.
Stock markets in Asia tumbled earlier after Wall Street saw wild swings Wednesday before ending down 173 points.
But what about the potential for a "perfect storm"??: fear of disease (and over-reactions), terrorism threat, US consumers "flatlining" because of decreased expendable income.
I doubt the new reality will look anything like the old reality, before the recession.
I agree with your “perfect storm” view. There are a number of factors driving this market down. IMO it had gone up too long without a healthy correction. Add to that a long list of domestic and geopolitical problems/flashpoints and you have a witches brew of issues generating very strong headwinds for the market.
And you may be right about the new reality. I’m struggling to find any bright spots in our economy but if the Republicans manage to take back the senate in a strong showing we might get some positive market reaction. Also, the price of oil is down and interest rates remain low which are both pluses for the economy.
But on balance, things are not good. The storm will be with us for awhile longer. The country has to somehow survivie two more years of Obamageddon so in the meantime its probably prudent to stick with a low risk, conservative investment profile. Ride out the storm. Just my two cents.
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