Stock market crashing - 20th of Feb 2020

theballz

The Dow’s losses are now greater than 300 points and it’s still not clear what is driving the move, other than possible technical analysis factors triggering quantitative selling. The Dow went from down 200 points to negative 370 points in the span of just a couple of minutes. Traders contacted by CNBC so far have no good reason behind the move. Big liquid name like Microsoft are falling with ‘MSFT’ now down more than 2% -Melloy

Live updates here: https://www.cnbc.com/2020/02/20/stock-market-today-live.html

Many putting this down to the CoronaVirus

SEPT 23 1989

supply chains are fcuked the man on the street will be feeling it soon

Yurt2

Chinese government chatting mad sh*t about sustaining 6% growth this year. Things are utterly frozen there, economic contagion to neighbouring countries is already obvious.

jhegarty

I don't think a less than 1% drop is a crash.

timetogo1

jhegarty wrote: »

I don't think a less than 1% drop is a crash.

Exactly, a couple of weeks of gains and one day going the opposite direction is a crash?
My portfolio has reduced to where it was on Monday.

CinemaGuy45

jhegarty wrote: »

I don't think a less than 1% drop is a crash.

Could you not wait a bit longer before ruining this doomer fantasy thread?:P

Quantum Erasure

Rodney, you are gonna be in charge of selling and I'm gonna be in charge of purchasing.
So what will happen is, that you will be in the marketplace, you'll be selling.
I'll be up there in the factories and the warehouses and I will be buying.
And if you find a line is going particularly well, all you gotta do is you get on the blower to me and say, - "Del Boy, buy, buy, buy".

- Yeah! And then you could get on the blower to me and go "sell, sell, sell!"

BanditLuke

Will I sell my pork bellies?

Englo

US stock market has done this quite frequently under Trump. When the bubble bursts it will be so loud that it will take all of our eardrums with it and it is way, way more volatile than ever before (attributed by many as frequently intentional, to facilitate insider trading), but it has continued to go up all the same.

JohnnyFlash

Tech is massively overvalued. WeWork was the first wobble, but we’ve still Uber, Lyft and a load of those awful gig-economy ‘platforms’ to come crashing down.

At least Microsoft and Amazon produce things, but still value over earnings is off the chart.

It might not be today, but there’s a massive correction coming up. When you have utility shares trading at 22 times earnings then you’re in a bubble.

niallers1

If it does crash that just means a lovely opportunity to buy stocks at a good discount.

James Brown

BanditLuke wrote: »

Will I sell my pork bellies?

Shh, you'll cause a run. I'm barely holding on to my gold bars ffs.

theballz

Bowie wrote: »

Shh, you'll cause a run. I'm barely holding on to my gold bars ffs.

Gold touched its highest level in more than seven years on today as investors seek safe haven assets and is currently on track for its sixth straight positive session, and eighth positive week in nine.

You’ll be okay.

Idbatterim

Ill start my concern when I hear there has been a crash! even a stopped clock is right twice a day and you or I wont be doing much to stop it!

Englo

It finished down 128. What we saw this morning was likely just something extremely illegal, has happened a bunch of times in the last 2 or 3 years.

AllGunsBlazing

BanditLuke wrote: »

Will I sell my pork bellies?

Psst ...Frozen Concentrated Orange Juice. Apparently the winter conditions didn't affect the harvest. :cool:

Mulberrytree

AllGunsBlazing wrote: »

Psst ...Frozen Concentrated Orange Juice. Apparently the winter conditions didn't affect the harvest. :cool:

So, you've seen the crop report? :-D

ygolometsipe

300 points (DOW) is about 1%.

A crash is generally defined as 10% or more drop in one day.
A correction is generally defined as a 10% drop over a few days but then theirs a recovery.

I have seen multiple corrections over a few months where the overall decline is 20% then it recovers.

If China does not recover soon, it could easily cause a crash. Half their population is in quarantine!!!
The USA is at ATH (all time highs) so a correction or crash would not be surprising.

Englo

It's starting to look more concerning now, the thinking was that teh Dow would bounce back, but instead it lost over 10p more pints yesterday. That wasn't a big deal either, until today when it dropped another 1,192 points.

Since Friday, it has dropped from 29,146 to 25,765 - a drop of 3,381 points, or 11.6%.

There was a similar drop off in Q4 2018 though, actually a bit bigger, but it was drawn out over a few months rather than less than a week. In an election year, I would ismgine there Wil kbe some pretty desperate measures put in to stop the bleeding, though it is hard to know how well they will work and how much this is linked with coronavirus.

Tomorrow and next week will certainly be interesting.

niallers1

Manufacturing is back to work in China. Wuhan region is expected back in a couple of weeks.

Nice discounts to be had. Fill your boots.

Englo

niallers1 wrote: »

Manufacturing is back to work in China.

Are you sure about that? I tried looking it up but all I am finding is if anything, the opposite - that sites which were set to open in Wuhan are being delayed due to 5he coronavirus.

Here is one from just a few hours ago - https://www.google.com/amp/s/amp.freep.com/amp/4884203002

The restart of production at General Motors' massive factory in Wuhan, China, has been delayed by nearly a month as the government took new actions to limit the spread of the coronavirus, the company said.

That's because Hubei Province in China has called for extended shutdown of production until March 10. GM's plant in Wuhan is located in Hubei. GM had planned a staggered start to production across its China operations, which Wuhan is part of, from Feb. 15.

"But given Hubei Province’s extended shutdown until March 10, we are adjusting the restart of the Wuhan Plant to be in line with the government's updated arrangements," said GM spokesman David Barnas.

BanditLuke

niallers1 wrote: »

Manufacturing is back to work in China. Wuhan region is expected back in a couple of weeks.

Nice discounts to be had. Fill your boots.

Eh wrong.

niallers1

Englo wrote: »

Are you sure about that? I tried looking it up but all I am finding is if anything, the opposite - that sites which were set to open in Wuhan are being delayed due to 5he coronavirus.

Here is one from just a few hours ago - https://www.google.com/amp/s/amp.freep.com/amp/4884203002

Yep, I work for a major multinational and all our factories in China apart from our Wuhan factory is back manufacturing again. We expect our Wuhan factory to be back in a couple of weeks.

Yurt!

Yurt! wrote: »

Chinese government chatting mad sh*t about sustaining 6% growth this year. Things are utterly frozen there, economic contagion to neighbouring countries is already obvious.

Wrong. They're already reactivating their infrastructure. Transport links are fully operational for goods/resources, and they've already started the recall for workers to the government financed factories.

Wuhan (and Hubei to a lesser extent) will continue to be isolated from their network, which is a pain since Wuhan is so important, but they'll manage to get most of their economy back up pretty quickly.

Tourism within China has already started with large crowds already flooding to the main sites. Utterly insane IMHO but it is what it is. You can see them online in large crowds, some with masks and some without. The restrictions for apartments/residential and movement in cities are still in effect, but expect to see a relaxation of them if there's no major outbreaks as this kicks into full swing.

I've already received a heads-up from my university that they're being encouraged to reopen soon (Mid march), although I suspect they'll wait for a while, since the vast majority of students would live in dormitories, so a virus outbreak would be a disaster.

If anything comes out of this, I hope the West moves away from China as a source of manufactured goods.

Utterly unreliable, filthy and secretive.

Even moving to Africa would be better, to give that continent a leg-up

NIMAN

salonfire wrote: »

If anything comes out of this, I hope the West moves away from China as a source of manufactured goods.

Utterly unreliable, filthy and secretive.

Even moving to Africa would be better, to give that continent a leg-up

Or here's another wacky idea, why don't they do it themselves?

RandomName2

NIMAN wrote: »

Or here's another wacky idea, why don't they do it themselves?

That would require protectionism given that production and wage costs are several times cheaper in non-western countries.

RandomName2

RandomName2 wrote: »

That would require protectionism given that production and wage costs are several times cheaper in non-western countries.

And that's basically why China is sourced.... and generally speaking, it's one of the better countries to source from, since money is their god. Besides, their economy is pretty dependent on foreign trade so they have an interest in keeping it running. The corruption is an issue but Asia, M.East and Africa, all suffer from it. Hell, the Mediterranean is pretty rife with corruption and inefficiencies.

NIMAN wrote:

Utterly unreliable, filthy and secretive.

Even moving to Africa would be better, to give that continent a leg-up

More than a bit ignorant and naive both there. All major nations are secretive, it's just a coin toss as to which is more so... corporations or governments.

Filthy? Somewhat, although I've seen just as bad in many western countries, and better than some. It's a country undergoing massive change in the cities, upgrading an obsolete/archaic system, and the countryside or tier 3 cities lag far behind on the list of priorities. Ireland was lucky to get EEC/EU money to boost us into first world status.. China doesn't have someone to hand them the money needed to do the same, and Ireland is still way behind in many areas. It's easy to complain when you fail to take into account the challenges that China (or India) face, due to population and landmass, that Irish people never needed to... and the remainder of the west had a longer more gradual period to industrialise, and become cleaner.

Now.. unreliable. Yup. Definitely agree there, although again, that's a malaise common in most countries outside of the US/Europe. Spain/Italy/etc are incredibly unreliable.. so.. it seems to be a fairly common negative.

Lastly, I'm going to assume you haven't been to either China or various parts of Africa, because, there are very few places in Africa stable enough to warrant major investment.. And they've had their own fair share of disease or other disasters hit them.

There's not a whole lot of choice when it comes to this kind of business.

theballz

Idbatterim wrote: »

Ill start my concern when I hear there has been a crash! even a stopped clock is right twice a day and you or I wont be doing much to stop it!

Concerned now?

ILoveYourVibes

NIMAN wrote: »

Or here's another wacky idea, why don't they do it themselves?

Some african govts are not much better than china and china has a hand in a lot of them so honestly this is better.

ILoveYourVibes

I will say one thing.

Yes its awful now. But when the economy opens there will be a surge in the opposite direction.

The issue is this ....you won't have economies opening at the same time. When china is open the US is closed etc.