Posted on 02/05/2018 12:54:55 PM PST by SeekAndFind
The Dow Jones Industrial Average has plunged by nearly 1,500 points in a day of volatile trading that has rattled global markets.
The leading US stock market index is down more than 5.8% at 24,025.33.
It is the worst one day fall in points since September 2008 during the depths of the financial crisis.
The decline extends losses on Friday, when strong wage growth data raised the prospect of accelerated interest rate rises.
Monday's sell-off surpasses a 777.68 points drop on the Dow Jones on 29 September 2008 when Congress rejected a $700bn bank bailout plan following the collapse of US investment bank Lehman Brothers.
The Dow was closely followed by the wider S&P 500 stock index, down 2.6% and the technology-heavy Nasdaq, down 2%.
London's main share index, the FTSE 100, closed down 1.46% while earlier, the biggest markets in Asia fell between 1% and 2.5%.
The decline followed months of market increases, which had fuelled concerns that share prices were over valued.
The Dow, which tracks 30 major US companies, has fallen more than 1,000 points over two days of trading.
The Dow dramatic fall marks a turnaround from January, when it raced raced past the 25,000 point and 26,000 point milestones in less than a month.
David Madden, market analyst at CMC Markets, said: "Equity traders were enjoying a bullish run recently, and the jolt from the major decline in the US last Friday has triggered a worldwide round of profit taking."
(Excerpt) Read more at bbc.com ...
Rothschild tricks in action?
Reminds me a tad of the late 87 drop. Huge day after day collapses. Something no one points out though, is the market, after correcting about 27% lat in the year was still ahead of its opening prices on Jan 1st.
Large sell offs (not this one yet) are marked at the near bottom with big buy back from companies buying their own stock. When you see that happening, happy days are coming.
Right now, don’t grab a falling knife.
With all the cash allegedly coming back home from across the pond, the lower taxes, and relatively sanguine cost structures these days, the cash has to go somewhere...just need to keep an eye out for where it will go. My guess, buybacks and MandA.
RE: It’s just a flesh wound.. nothing to see, move along folks,
That quote sounds familiar. Were you the same person who wrote this last Friday when the Dow dropped 666 devilish points.
Overdue. I’m surprised a correction took this long. That said, I believe investors have priced in the expected drop in equity prices - meaning the price-to-earnings ratio, in most cases, won’t greatly affect the value of a stock.
That said, this could eventually be an aid to infrastructure spending - as investors grow skittish on stocks, they will look for safe havens in corporate and muni bonds.
The market is flush with cash, fueling talk of hiking interest rates. This probably accelerates that
No crazier than the other conspiracies posted here:
Companies want their stock low so they can buy it back cheap...
(not serious)
Seems like a possibility.
it is but a blip read 102 it’s explained. This will come back.
Buying opportunity.
On Friday, I posted that that Monday after a large Friday sell off tends to be a blood bath.
Apparently, I was not the only person with that theory.
“...Let’s hope. I’d like to retire in a couple of years!...”
I hear ya....I’m already retired and just play the market more as a hobby than anything else. I trade a lot of derivatives as well as stocks. I guess what really pees me off is that I saw this coming, and should have sold some of my higher stocks and then bought some PUTs against the stocks in the Dow. I almost did it a couple of weeks ago, but held out...my mistake. I did have a handful of PUTs against IBM & UPS that I did very well on the last couple of days, but not enough to offset the stock declines. So now, I’ll bargain shop for dividend stocks and will likely buy some long-term calls on the Dow 30 stocks. We’ll see how it plays out.
not yet wait til late friday
I agree. I wonder if he'll brag about having the largest single day point drop at his next event?
what is the fed rate up to?
Related: Shekel, Euro, pound down - dollar up
http://www.freerepublic.com/focus/f-news/3629539/posts
oh well, remember hindsight is 20-20. I always see it coming yet never act on it. I was thinking of dumping my life savings on the index options puts. Thing is, our memories forget the times we were wrong on our guesses and never acted on them either.
I even call my brother, a money manager who usually ignores me or belittles me because of our wealth disparity, but on days like today he listens to me because I give him confidence and great talking points by walking him through what happened. He takes that and uses it to keep clients calm and to steal somebody else’s clients who may have taken a bigger hit than they should have.
All the fundamentals are positive. People took profits today and people are going to be reinvesting next week.
The market goes up and the market comes down. When it has been on a streak as hot as it has been for the past year, it is bound to fall hard when it does!
That’s what I think. There is a lot more manipulation than most people realize. Soros & Biuffet are hurting puppies. They just can’t seem to derail the Trump Train. This will settle down.
..don’t know anything about the market, but the timing of this sure appears to be some very powerful people sending a warning—like a trainwreck ...
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