Posted on 10/29/2018 9:29:08 AM PDT by oblomov
Prominent investor Mark Mobius said Monday that he sees the recent correction deepening if Republicans lose control in Congress next week.
"If, for example, the Democrats get control of the House, I believe this will be bad for the U.S. market," Mark Mobius, co-founder of Mobius Capital Partners, said in a Bloomberg TV interview. "So you will probably see more of a correction going forward in the U.S. market."
From a technical investing perspective, Mobius said the market "looks very bad." All three major stock indexes are down sharply in October. The Dow Jones Industrial Average is down nearly 6 percent this month. The S&P 500 has fallen 7.5 percent this month and on Friday dipped more than 10 percent from its intraday high of 2.940.91 on Sept. 21, a correction as defined by Wall Street.
"It's really broken down the long term trend. If [the S&P 500] goes down by 15 [percent] then we're in completely new territory and you'll see more declines," Mobius said.
Mobius pointed to the heavy October losses among big tech stocks like Netflix and Amazon. The tech-heavy Nasdaq Composite is down 9.9 percent this month.
"Any of these stocks ... are down 20 percent or so, they're leading the decline of the S&P. If this continues – and I think it will, with interest rates going up – a lot of the tech area is in trouble, because no more raising a billion dollars for a company that's losing money, that's over," Mobius said.
(Excerpt) Read more at cnbc.com ...
THIS!!! or some entities trying to sway the election??
THIS!!! or some entities trying to sway the election??
Reason enough to vote for the R jersey this time.....
We have to start thinking now about cleaning out the Bush League Republicans next cycle.
Alexander and Graham for sure for their amnesty vote, there are more, I’m sure.
Also sanctions and tarrifs (same thing in some cases) on China. Affects big tech stocks.
Would be bad for America and most of us. Democrats are evil and hate America.
Democrats winning the House would be bad for Americans period!
Yes, it the Dems take the House, it wouldn’t surprise me to see another 10% or so shaved off the S&P 500.
Dims losing is good for non-moocher and or non-illegal Invaders.
Meanwhile, Bloomberg is saying that Dems taking control is a done deal. These same folks said that Trump winning would cause the collapse of the entire world economy in 2016.
“If, for example, the Democrats get control of the House, I believe this will be bad for the U.S. market,” Mark Mobius, co-founder of Mobius Capital Partners, said in a Bloomberg TV interview. “So you will probably see more of a correction going forward in the U.S. market.”
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Yah think?!
Republican House would certainly be better than a Dem house. Would allow more positive reform, which there's still a need for.
But gridlock generally isn't all that bad either.
The current pullback is long overdue. Good for the markets to take a deep breath every now and then. Meanwhile, it's a buying opportunity.
Exactly why I’m buying into this dip. I believe the market is down for two reasons only: 1) fear of Dems taking the House and 2) Deep State trying to manipulate the market by selling pressure.
I’m putting my money that the ‘blue wave’ will be a bit of backwash and DS only has so much they can pressure. Day after the election I predict a 500 pt rise when the Pubbies keep the House and gain seats in the Senate.
If not then I’ll just hold for longer then planned.
Well, no collapse, but I thought that Trump's election would cause a pullback, as a Republican administration gave the market some touch love in the form of higher interest rates.
I was right, for about 3 hours the Wednesday after the election. Then, I was very very wrong....and that's not a bad thing. Interesting that de-regulation and tax reform had an exponentially stronger effect than higher interest rates.
It’s nice to see a couple of intelligent posts. The market hates uncertainty. The one place we disagree on...500 points on the Dow. In this day and age that’s 2%. I think we’ll do better than that.
I bow to your greater reason...I was trying to give myself some wiggle room to be “surprised” :)
Duhhhhh!
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