10-03-2019, 07:24 AM
** 03-Oct-2019 World View: Gloomy October
After the Dow Jones Industrial Average has sold off 800+ points in the
last two days, stock futures have gone negative in the last hour, this
morning (Thursday).
Major market crashes in the past have occurred during the month of
October, and there is speculation that this will be another such
October. It's worth pointing out that the same speculation occurs
almost every October, and the speculation fizzles by mid-October.
This year, such speculation refers to the global economic slowing,
with China and Germany leading the way. In addition, there's no end
in sight for US-China trade disputes, or for Japan-South Korea trade
disputes. For China, there's no end in sight to the Hong Kong riots.
These factors are causing many companies to move their supply chains
out of China and into other countries like Vietnam, and to move their
money out of Hong Kong into Singapore. Such actions may be beneficial
in the long run, but in the short run they're adding to concerns that
this will be a gloomy October.
---- Sources:
** Why Does the Stock Market Go Lower in October?
** https://finance.zacks.com/stock-market-l...-6428.html
** Stocks just delivered a reminder about October’s reputation for
volatility
** https://www.marketwatch.com/story/histor...2019-10-01
After the Dow Jones Industrial Average has sold off 800+ points in the
last two days, stock futures have gone negative in the last hour, this
morning (Thursday).
Major market crashes in the past have occurred during the month of
October, and there is speculation that this will be another such
October. It's worth pointing out that the same speculation occurs
almost every October, and the speculation fizzles by mid-October.
This year, such speculation refers to the global economic slowing,
with China and Germany leading the way. In addition, there's no end
in sight for US-China trade disputes, or for Japan-South Korea trade
disputes. For China, there's no end in sight to the Hong Kong riots.
These factors are causing many companies to move their supply chains
out of China and into other countries like Vietnam, and to move their
money out of Hong Kong into Singapore. Such actions may be beneficial
in the long run, but in the short run they're adding to concerns that
this will be a gloomy October.
---- Sources:
** Why Does the Stock Market Go Lower in October?
** https://finance.zacks.com/stock-market-l...-6428.html
** Stocks just delivered a reminder about October’s reputation for
volatility
** https://www.marketwatch.com/story/histor...2019-10-01
