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Old 08-25-2015, 06:43 AM
 
5,894 posts, read 6,847,631 times
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^fun facts to reduce the China scare
even after these massive drops that is freaking everyone out - China’s market is still up 45% over the last year.
The big 'worry' is about the Chinese economy slowing from 7% to 6% annualized growth. Latest estimate is that our economic growth is 1.3% annualized. So, China is still growing 5 times faster than we are.

4 days of a bad stock market isn't reason to believe the sky is falling. About 75% of companies are beating 2nd quarter earnings currently.
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Old 08-25-2015, 06:50 AM
 
Location: Marshall-Shadeland, Pittsburgh, PA
32,606 posts, read 77,308,465 times
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Don't people realize that by feeding into the economic hysteria that all you're doing is making things worse? If people saw the stock nosedive yesterday and thought "SELL, SELL, SELL!!!" instead of "slow and steady wins the race", opting instead to hold onto their portfolio and let it return to where it was over time, then it was just bound to make an already bad situation worse.

I instead vow to continue to try to do my part to help the economy, especially the local economy by buying local. I'm not going to hoard my money under my mattress and contribute to a panic that may lead us into a double-dip recession.
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Old 08-25-2015, 08:10 AM
 
Location: Etna, PA
2,860 posts, read 1,880,983 times
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Quote:
Originally Posted by UKyank View Post
^fun facts to reduce the China scare
even after these massive drops that is freaking everyone out - China’s market is still up 45% over the last year.
The big 'worry' is about the Chinese economy slowing from 7% to 6% annualized growth. Latest estimate is that our economic growth is 1.3% annualized. So, China is still growing 5 times faster than we are.

4 days of a bad stock market isn't reason to believe the sky is falling. About 75% of companies are beating 2nd quarter earnings currently.
Indeed, I don't think people are worried about China going into recession. But, there have been signs that China's breakneck growth is now slowing which will have a global ripple effect. I've been reading of that in The Economist for several months.

The Canadian economy is in a tough spot - with oil prices low and an overheated property bubble seemingly set to burst: How Canada's economy went from boom to recession so fast
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Old 08-25-2015, 08:17 AM
 
Location: United States
12,390 posts, read 7,051,069 times
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Quote:
Originally Posted by tyovan4 View Post
The causes and consequences of China's market crash | The Economist

Commodities prices are falling.
BRIC isn't in good shape. Chinese economy is slowing. Russian economy is getting pounded by international sanctions.
EU is a mess. Germany is becoming a welfare hotel for hundreds of thousands of people.
Japan is drowning in debt.
Australia is worried about recession due to fall in commodities prices and fall in Chinese demand.
Canadian property bubble is set to burst and their economy may already be on the brink of a recession, which is why Harper's re-election is threatened by the yahoos from the NDP.
Policy makers have few tools at their disposal, as the interest rates are already so low.

The global economy is certainly not in a very healthy state at the moment. And only a matter of time until the US sees more effects.
Also add that oil prices are way down, and likely to continue to drop. Despite falling prices, OPEC is still pumping out massive amounts of oil. This is bad news for the one of the very few economic bright spots since the last recession, shale oil job growth. Some are predicting shale oil could go belly up, and lead to massive job loses in the energy sector.

I hope I'm wrong, but all the signs are pointing to the fact that a recession is coming. I have no formal economic education, so don't take my word for it, do the research, there are many economists predicting a recession.


Quote:
Originally Posted by SteelCityRising View Post
Don't people realize that by feeding into the economic hysteria that all you're doing is making things worse? If people saw the stock nosedive yesterday and thought "SELL, SELL, SELL!!!" instead of "slow and steady wins the race", opting instead to hold onto their portfolio and let it return to where it was over time, then it was just bound to make an already bad situation worse.

I instead vow to continue to try to do my part to help the economy, especially the local economy by buying local. I'm not going to hoard my money under my mattress and contribute to a panic that may lead us into a double-dip recession.
People are selling because they know the stock market is a bubble ready to pop, so the smart people have been cashing out, and made decent money.

It's not a bad idea to spend your cash, but be smart, and spend it on good investments that tend to hold their value. Personally, I like real estate, but there are other good options.

Last edited by stburr91; 08-25-2015 at 08:30 AM..
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Old 08-25-2015, 08:39 AM
gg
 
Location: Pittsburgh
26,137 posts, read 25,802,562 times
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Quote:
Originally Posted by stburr91 View Post
People are selling because they know the stock market is a bubble ready to pop, so the smart people have been cashing out, and made decent money.

It's not a bad idea to spend your cash, but be smart, and spend it on good investments that tend to hold their value. Personally, I like real estate, but there are other good options.
Real estate has a lot of costs and maintenance involved. The stock market has been amazing in the past several years. It isn't going to "pop" in the least. The growth is nice and steady, not to mention much more real. People all look at the DOW getting pounded for a few days as it is some huge thing. It is just nervous about a potential slowdown, but the question is at what level will the market find support? Keep in mind the market is an indication of future, so people are predicting. The folks on the sidelines love to predict a massive downturn because they missed the boat. If you are not in, you are out and not credible. Too tainted to have a real opinion due to sour grapes. Enjoy.
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Old 08-25-2015, 08:41 AM
 
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I guess that's why it's gambling. I bought a lot yesterday.
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Old 08-25-2015, 08:44 AM
 
Location: Pittsburgh
6,782 posts, read 9,534,763 times
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Quote:
Originally Posted by UKyank View Post
I bought a lot yesterday.
So, real estate for you also?
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Old 08-25-2015, 08:53 AM
 
5,894 posts, read 6,847,631 times
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Quote:
Originally Posted by Moby Hick View Post
So, real estate for you also?
Unfortunately my bank account doesn't allow for buying lots of real estate
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Old 08-25-2015, 09:00 AM
 
Location: United States
12,390 posts, read 7,051,069 times
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Quote:
Originally Posted by gg View Post
Real estate has a lot of costs and maintenance involved. The stock market has been amazing in the past several years. It isn't going to "pop" in the least. The growth is nice and steady, not to mention much more real. People all look at the DOW getting pounded for a few days as it is some huge thing. It is just nervous about a potential slowdown, but the question is at what level will the market find support? Keep in mind the market is an indication of future, so people are predicting. The folks on the sidelines love to predict a massive downturn because they missed the boat. If you are not in, you are out and not credible. Too tainted to have a real opinion due to sour grapes. Enjoy.
You are correct about real estate, there are many costs, that's why I like investment property.

I'm not saying that the stock market isn't a good place to put money, but you need to know how to play that game. However, once the Fed indicated that they may raise rates, people know the free money was going to end, and that the market was going to correct. There are many saying it's more likely that the Fed will do another round of QE, rather than raise rates. The fact that we may be heading into a recession supports this thinking. This will of course pump more free money into the market, and up we go again, until the bubble pops, and we come crashing down. If the market doesn't correct, the bubble will eventually pop.
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Old 08-25-2015, 09:04 AM
 
Location: Western PA
3,733 posts, read 5,936,000 times
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This market correction was way overdue. It would have been a bigger problem is the market had kept going up like it has. Corrections are healthy and should happen periodically. And the best thing to do if you have a long time horizon is to keep investing, especially now, because you're buying at cheap prices. People who held on and kept buying through the Great Recession are still way ahead.
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