The key question now is what is the proper name or cause of this recent drop?

Discussion in 'Trading' started by OddTrader, Jan 20, 2016.

  1. The key question now is what is the proper name or cause of this recent drop?

    If we cannot find its proper name/cause, that would mean the current market could be still fundamentally OK!

    What do you think?
     
  2. Trend following.
     
  3. i think the appropriate name for this event is "bear market"

    what caused it? buyer exhaustion despite low interest rates
     
  4. buttf^k majorly
     
  5. radical capitalism
    yes a few extremists are selling
    but most of us capiltalists are getting screwed just like you
     
  6. jsp326

    jsp326

    They tapered off QE and finally had one little rate hike after 7 years...and the house of cards seems to be falling. This says more about the 2009-2014 bull market than the current crash.
     
  7. ktm

    ktm

    The most credible explanation I've heard is significant liquidation by sovereign wealth funds and wealthy individuals associated with those countries - in order to raise cash to meet the shortfall created by lower oil prices.

    Remember, this is a two way street. Just as the funds are coming out when there's no material change in underlying equity valuation metrics, those funds can also flow back in when oil rebounds and they need a place to park the cash.
     
  8. Cswim63

    Cswim63

    I think this should be called the Chicken Little Drop. And I really might enjoy it more if they would stop bringing the scary bears out of hibernation. Up is good, down is bad. I get it already. The first guy who celebrates the fact that change is good and creates opportunity for the swift and smart gets a gold star. And a share of stock in the next new thing. Courtesy of Swimr. Stop with the negativity!
     
  9. Q
    http://www.theage.com.au/business/m...s-for-economy-clime-says-20160121-gmavk3.html

    [​IMG]
    UQ


    Q
    https://en.wikipedia.org/wiki/Economy_of_Slovakia

    Economy of Slovakia

    Credit rating

    Standard & Poor's:
    A+ (Domestic)
    A+ (Foreign)
    AAA (T&C Assessment)
    Outlook: Stable


    Since GDP grew strongly from 2000 until 2008 – reporting 10.4% growth in 2007 – the Slovak economy was referred to as the Tatra Tiger.

    Slovakia became an EU member state in 2004 and adopted the euro at the beginning of 2009. Its capital, Bratislava, is the largest financial centre in Slovakia. As of April 2015, the unemployment rate was 12.1%.

    UQ
     
    Last edited: Jan 21, 2016