Friday 6 March 2020

Friday Fun - Viral Market Turmoil

How low will the markets go?

In what proved to be a dead cat bounce for a couple of days, it seemed that Global markets had rallied off the lows. I spoke to a few city types who assured me the Hedge funds had closed their shorts and gone long.

But then today has proved another tough day with the FTSE down 3.5% to a new low for the year and Global markets all in risk-off mode?

So for the weekend, where are the markets going to go. Oil is down below $50 a barrel and staying there, will this itself cause a bounce as that has a deflationary effect across the whole world? Will that save airlines (I doubt it)? Will the market carry on witht he FTSE headed toward 5000 and the Dow 20,000?

Or is this all overdone and the bounce back be strong next week?

Interesting times ahead.


Timbo614 said...

I'm really sorry chaps & chapesses but it will be really quite bad, probably as bad as 4,500.
You see after years out of the direct share market I was looking for retirement income via blue chip divis . So in October I started buying...


andrew said...

Two opinions
With 20% of britian off sick, profits are going to be over 20% down. Round that to 30% off stocks.
Cheap china hols! Flights for 300 return.
Capitalism may be dying but i want a new phone.

Anonymous said...

And in a magnificent example of European solidarity, Germany and France have banned the export of face masks and gloves. Italy not best pleased.

Anyone know if we still make such things in the UK? I know the media are downplaying it, but hand sanitiser has vanished where I live, and masks went a couple of weeks ago.

Sackerson said...

Sanitiser, n.

Someone who tries to talk sense when everybody is panicking.

iOpener said...

It won't stabilize until publicly traded corporations have some handle on how much their collapse of trust for China and Chinese involved supply chains will cost.

How much will the current collapse of supply chains due to Chinese lack of production cost?

How much will it cost either to shore up reliability of Chinese producers or find other producers?

dearieme said...

At 4,500 even we would buy shares. Or rather ETFs.

DJK said...

Anon: China is producing huge numbers of masks, testing kits, sanitizer, etc. I'm expecting that as they get back to normal in the next couple of weeks, they will start exporting, to satisfy the demand in the rest of the world.

Jan said...

@Timbo #me too and so far the plan isn't working!

I do have plenty of good old fashioned soap though in a bar.....none of these fancy over-packaged new-fangled liquid soap/sanitisers etc

Actually I'm more concerned about loo rolls.

andrew said...

On hand sanitiser,
Complete evidence of group stupidity
If you keep your hands clean, you reduce the risk of transmission from you to others.
If other people keep their hands clean, the risk of transmission from them to you is reduced.
Which would you prefer?

Timbo614 said...

$hit, $hit, $hit! The plan is completely broken now :(

To buy or not to buy? Is this the worst? The bottom? 4,500 was a joke but is it really on the cards?

CityUnslicker said...

well it is getting nasty today.

andrew said...

imo if you did not sell ~2 weeks ago, do nothing.

Timbo614 said...

@andrew, That is all there is to do now, except possibly buy to "average down". Thanks