You'll notice in the DOW there are 3 noticeable dips. The 2001-2002 dip is possibly due to 9/11, the 2008 dip is definitely due to the Housing Crash, what exactly is causing this current dip?
I personally believe it's Baby Boomers pulling cash out of the market because they're retiring now, just my opinion though.
Welcome to the Great Depression 2.0. Hold cash now, and wait for the crash. After this is all over and the markets have burned to the ground, plant your fresh cash into the ground and watch it grow like crazy into the new Secular Bull Market.
Its the sovereign debt bubble, well sort of.
Right now there is a sort of omnipresent unkown fear thats causing markets to plunge (probably sparked by china and the fed), but the fact is that the debt crisis in europe was never fixed, just contained, and once GDP begins to contract its all going to erupt again.
Back in June, Germany came so close to letting Greece leave--there just wasnt any more willpower, and now they are hampered by the refugee crisis. They are out of ammo o combat an eruption of the debt crisis.
Once the Euro breaks up, the contagion can spread to Japan as well. Once everyone flocks to the dollar, itll cause deflation, which will bring depression to the US because the fed is no longer able to lower rates.
not really, remember than a low oil price means low demand for USD reserves - america responds to strengthen dollar, not low demand for US goods and services.
It's all petrodollar, the Saudis are responding to the new US policy of stoking a Sunni/Shia war.
>I personally believe it's Baby Boomers pulling cash out of the market because they're retiring now, just my opinion though
>Strong dollar (low foreign investment)
>Fed increases rate (deflationary-ish)
>China Stock plummet
>Manufacturing slow-down in China
>Euro is recovering
Just a lot of bad sentiment in the market from all these news
God read the headlines for the Economist for a start lad
>Its the sovereign debt bubble, well sort of.
strong $$$ is making foreign countries cash in US sovereign debt.
This is a a deflationary time. Don't catch a falling knife and buy when it feels stable enough.
I would say blue chips are a safe bet.
forgot to stick the graph
Agreed. Last time a soft landing was achieved, there was space to maneuver with interest rates. Keeping them low has minimized the effects of 2008 but taken out the possibility to soften the blow of the following correction.
I actually hope it takes a bit more than a year to pick-up, so there more time for me to get cash for buying.
All we need now is a nice fat news headline: "Are we entering a new recession?" so everyone panics.
>I personally believe it's Baby Boomers pulling cash out of the market because they're retiring now, just my opinion though.
>tfw 1952 marks the midpoint between the beginning and end of the baby boomer generation (1950 if you factor out generation jones) and adding 65 (retirement age) to those values yields 2015-2017
H A P P E N I N G
Holy fuck I didn't realize how autistic you were. I read "9/11" as "dot com", scrolled down, got confused by some comments, until I realized you actually put 9/11.
Anyways, carry on the habbedings
its not the baby boomers its the jews
osama bin laden was jewish (hence the beard)
China's crashing, bringing down commodities which are then bringing down banks that loaned money to the commodity producers, this is mostly in oil but it's affecting other commodity industries as well, just not as dramatically. In addition we have the fact that we haven't really recovered from the 2008 crisis, baby boomers retiring like you said, Europe is a basket case of problems, the low interest rate environment has led to a lot of investment in junk bonds among other things and the Fed has little to no tools left in reserve to combat a recession.