S&P 500 and Dow and the Long-awaited Pullback

S&P 500 and Dow and the Long-awaited Pullback

Postby Speak-Ez on Mon Feb 05, 2018 5:48 pm

I am using the wording of a writer at Reuters in that title. I assume some experts were waiting for a "correction" in the stock market; and I am also assuming that is appropriate vocabulary, correction, if they are stating they were expecting a pullback.

But it seems to have gone beyond a "correction" and is now causing anxiety. As I am no expert I'll point you in the direction of the article put out by Reuters to get you started.

Wall St. plunges, S&P 500 erases 2018's gains

(Reuters) - U.S. stocks plunged in highly volatile trading on Monday, with the Dow industrials falling nearly 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially firming inflation.

The benchmark S&P 500 and the Dow suffered their biggest percentage drops since August 2011 as a long-awaited pullback from record highs deepened.

More at the link below the quote box.


https://www.reuters.com/article/us-usa- ... SKBN1FP1OR
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Re: S&P 500 and Dow and the Long-awaited Pullback

Postby CielOnTap on Wed Feb 07, 2018 4:03 pm

I have seen articles mention how six years is a very long time for a correction. Since May 2017, the NY stock market has mostly been in bull or ascension mode.

Housing prices in Canada have softened this year, so the stock market likely had this pullback coming.
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Re: S&P 500 and Dow and the Long-awaited Pullback

Postby Speak-Ez on Thu Feb 08, 2018 6:27 pm

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I think we better use a bit of a longer quote this time so that what the BBC wrote is clearer at a first glance on our site in this thread. We obviously don't know how messy this could get, of course. If we could do that kind of forecasting we'd be rich.

From BBC, first:

Wall Street shares slid sharply again on Thursday, compounding losses on the Dow Jones Industrial Average and S&P 500 which started last week.

The Dow Jones Industrial Average fell by more than 1,000 points for the second time this week, plunging 4.15% to 23,860.

The S&P 500 dropped 100.6 points or 3.75% to 2,581, while the Nasdaq slid 274.8 points or 3.9% to 6,777.1.

The moves follow a day of losses on all key European exchanges.

The 100 share index in London closed down 1.49% at 7,170.69 points. Germany and France fell 2.6% and 2% respectively.

The dive extends a sell-off that started last week, as investors started to worry that inflation might rise more quickly than expected, leading policymakers to raise interest rates.

On Thursday, the Bank of England seemed to offer support for that view.

The bank left interest rates where they were at 0.5% at its meeting, but said a strengthening economy meant interest rates were likely to rise sooner than the markets were expecting.

More to read on their site. Link below.


Link: http://www.bbc.com/news/business-42991310

So the picture is not clear whether we might be seeing the beginning of a big headache for some leaders around the world.

That lady in Germany might have made her political deal with the other political parties just in time to then turn around and devote time to fixing economic problems. Except it is the money people, lenders and such, that control those things. And control the leaders.

Be clear on that, everyone, the bankers run the world, not the political leaders. That is unless a banker becomes a head of state, but no smart banker would take a cut in salary to do that, would he/she?
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