MARKET CHAOS!


Investing & Money
piece written on the 25th August 2015 by  

Yesterday was one of those days where you just saw RED! The markets really were scary and investors around the world were jumping up and down trying to figure out what’s going on. It’s always worrying when we see such weakness, but folding to the weakness is normally what gets us in trouble. Of course that’s easier said than done, but reflect upon previous situations to try and find some kind of grounding. I think right now we need to keep our eyes to the floor and stay as informed as possible. The last thing we need is a real crash.

I’ve done some reading, specifically about yesterday and here are 5 major facts to consider:

  1. The Chinese stock exchange closed 8.5% down – worst since 1997!
  2. The Nikkei closed 4.6% down, Hong Kong down 5.17% and Australia down 4.09%
  3. The FTSE 100 was down 4.5%, the Dax down 3.7% and the CAC40 down 46%
  4. Our ALSI was down 2.85% (having gone down 5% during the day).
  5. The Dow was down 3%
dow-drop-online2

Scary situationĀ – We’ve gone from East to Europe to West and all the major markets are down! A lot of this is controlled by China ultimately and their devaluation of the Yuan a couple of weeks back appears to be what triggered people’s fear. With fear and anxiety, people sell stock and this more than often results in more people selling and ultimately the share prices are driven down.

I haven’t even touched on the exchange rates though, the pound was trading up at around R21.34! One wonders if the momentum will continue or if a pullback will happen, only fortune tellers will know.

Screen Shot 2015-08-25 at 11.39.14 AM

There are some interesting articles being published on the internet, here are a few I’ve read:

  1. What happened yesterday
  2. US invoked Rule 48
  3. Gold is the only commodity remaining strong
  4. What is happening to China?
  5. Apple CEO emailed Jim Cramer