Stocks End Two-Month Snooze With Plunge

[BlueKelah]

Bloomberg - Stocks End Two-Month Snooze With Plunge http://bloom.bg/2cM0Oc2

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[newborn1000]

Maybe a year end stock sale is coming =D

[brattzz]

Maybe a year end stock sale is coming =D

certainly hope soo!

Need a correction to pick up value stocks for next May 2017!

[BlueKelah]

Haha it will be really funny if there is another stock crash happen just as trump is elected.

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[brattzz]

possible! november trump may happen!!! !

[corydorus]

Spice it with fed rate hike, and relatively quiet devaluation of RMB. For years bets were on appreciating yuan. What's the impact ? I think year end is risky.

[soros]

The share prices in US market are very high and global investment funds are now returning to Asian markets. Hong Kong stock market has been rising during past 6 weeks and now Hang Seng Index is creeping up to 24,000 levels.

[BlueKelah]

The share prices in US market are very  high and global investment  funds are now returning to Asian markets.  Hong Kong stock market has been rising during past 6 weeks  and now Hang Seng Index is  creeping up to 24,000 levels.

Ah Seng just lost 700 points , almost 2.9% since last Friday close. Looks like a sudden shift in sentiment. When the stock market go quiet and are high value with low volume, usually a sudden reversal with high volume is the next thing to happen. Those global investment funds must be underperforming again LOL...

In the mean time, quite a few big shots like George Soros with big money are invested more in gold related investments. Perhaps they know something we dont...

[soros]

I believe PE ratio is now over 20 for US share market but PE ratio for Hong Kong and Singapore market is about 13 . So I am expecting the US market to fall and Hong Kong and Singapore markets to rise as global investors transfer their investment funds back to Asia region .

[specuvestor]

What is strange to me is that markets in the past 6 months have been extremely sanguine and reactive. One can argue Brexit is a surprise but how can rate rise be a surprise?

“There is one point which is critical to understand,” Fischer said. “When we raise the interest rates which we will probably do one day, from zero to 25, from 25 to 50 basis points, we will be moving from an ultra-expansionary monetary policy to an extremely expansionary monetary policy.”
http://www.valuebuddies.com/thread-4576-...#pid109851

Monetary policy has to be set by economic conditions and impact to the system. The fed has signalled way ahead of their intent to reduce sudden shock to the system, the market had been notified and corporates can only blame themselves. As per my previous posts, i think Fed is trying to normalise the real rates rather than just look at inflation per se.

http://www.valuebuddies.com/thread-6244-...#pid107151

I remain convinced that the Fed is trying to move to a real rate scenario without killing the market too much, not because inflation is rising or growth is overheating etc, though this is becoming a contortionist act. My guess is 1 hike a year and Fed funds will go above 1% before any halt.