Tuesday, Aug 14, 2007
US stocks fall on renewed jitters
BBC: US stocks fall on renewed jitters
US stocks have fallen in early trading, with problems in the mortgage sector continuing to have an adverse effect on market sentiment.
Posted by david20040_0 @ 05:30 PM (152 views) Add Comment
18 Comments
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1. david20040_0 said...
Inflation down, house prices up.
Now stocks are falling again.
What is going on?
2. david20040_0 said...
And yes, I fully admit I was wrong on stocks.
3. cyril said...
Don't worry, the economy's in good shape. Gordon Brown said so the other day.
4. deepak said...
David, I would like you to look at the FTSE 100 chart for today. Have a closer look on when it starts to fall.
Just before 1400 hours. That is when US opens. I think that is a clear link that our economy is linked to US very closely.
Also for inflation, did you hear why the measure has come down? Its because of supermarket cuts in prices.
Can they keep them down for long. Maybe not as their profitability will fall and hence share value ( check out Morrisons )
Also this has lead to prices coming down but when they come back to normal, there would be unduly spike in inflation.
5. david20040_0 said...
Walmart/ Asda and Tesco are huge they can absorb the losses but I am not so sure about Sainsburys and Morrisons.
Falling to 1.9% with the CPI is gobsmacking.
IR rates will not rise now.
6. deepak said...
No Chairman can absorb falling share price. Not even Terry Lee.
What ever his record.
7. planning4acrash said...
Oh, David, David, David, "The Dow Jones was down 63 points to 13,173, as investors reacted to news that Wal-Mart and Home Depot had warned of tough times to come" But I thought that Wal-Mart was subsidising Asda discounting? And you claim, yet again without basis, that they can continue to subsidise prices coz they is big. If discounting is only in response to the Wal-Mart threat, it looks like this problem will quickly come off the boil as all supermarkets begin to look closer at their share prices, margins and whether they can afford to absorb higher distribution costs from fuel costs and higher food costs from a year of poor harvest and high bio-fuel demand, plus a higher cost for their highly leveraged expansion plans.
8. planning4acrash said...
Under all the dross, the real issue is a cyclical one. Is this the bottom for the fall in inflation since spring? With people saying that food retail prices will reverse in August, do they bounce up and head towards 3% from here in in time for Christmas? 6% before Christmas, 6.25% before Easter.
9. inbreda said...
through various pressures (like bio-fuel and bad weather) food prices are in fact rising. The dubious claim that lower food prices bought down CPI will soon be reversed.
Plus some
10. Novicepete said...
Watch the video for yesterdays trading in the US, seems pretty relevant to what's happening here.
http://www.youtube.com/user/inthemoneystocks
11. Alan said...
Sentinel Management Seeks to Freeze Redemptions - Bloomberg
"The firm said it was a victim of panic in among investors caused by the collapse of the subprime-mortgage market".
12. bingo said...
Like I said earlier, the stock markets don't even have a clue themselves what is going to happen next, just look at the markets they are all over the place. How someone as naive as David thinks he can call the markets, especially over a week end just shows him up to be the big mouth he really is. Yes David, you really rubbed our noses in it on Monday evening didn't you?! You have been wrong a lot more times than you have guessed correctly mate, and as for interest rates, we all want to see them shoot up, so why don't you keep predicting a drop.... I know it'll do my Sainsburys account the world of good...
Oh, and just for the record, I can afford to buy a house but they are over valued, lack quality and I wouldn't turn myself into a slave for anyone, let alone some mortgage company to$$er so he can drive around the congestion zone in his Aston Martin... I would rather use interest from my savings to pay my rent. I have a nice landlord, though he was round here last week, fixing a leak at the front door while it was pi$$ing down outside, my wife and I were inside having a nice glass of wine. This BTL malarky is a cracking deal... ;-)
13. uncle chris said...
I don't think we should be too hard on David, as it's no bad thing to have an alternative view expressed - however rose-tinted we think his spectacles are. If nothing else it generates a bit of debate on the blog and provides us with insight into some of the views probably held by a significant part of society, who don't seem concerned about the shakey fundamentals that underpin markets (house and financial) in the UK.
14. Winnie said...
True and he is not nearly as bad as some of those bulls on the forum
15. stillthinking said...
I think this emergency cash is a poisoned chalice really, because the banks are taking on debt while asset prices are going down and while their own profitability is down. The emergency injections can presumably only help by easing forced sales of assets, not voluntary ones. Even if I was a healthy fund, if I thought the other sick funds were going to sell then I would attempt to pre-empt them by selling first, and then buy them back later. Perhaps the BoE thinks that there are losses but not so bad so smooth over, or maybe just that cheap cash is -all- they can do anyway. If the losses are really bad, then they are really bad losses. Nothing to do. As essentially the banks money is real peoples money maybe they are wondering who is going to spending the money they don't have and working out nobody.
Given that stocks are being sold right and left, you could call that a 'confidence crisis'. What is the name of an inverse bubble? When shares go below true value. Bubbles are sentiment driven so they must go both ways. Looks like Friday 10th August is a candidate for the financial history books, and the hpc triggered by mortgage fraud in the US.
16. paul said...
Credit is the last and ultimate measure of confidence. When you pull that away, there's nothing left ...
17. david20040_0 said...
Why Friday still thinking?
The markets are on a yo yo right now.
18. Kev said...
Uncle Chris said: David "provides us with insight into some of the views probably held by a significant part of society, who don't seem concerned about the shakey fundamentals that underpin markets (house and financial) in the UK." I guess I fall into the category of "significant part of society" although, since reading hpc and your comments here I am starting to get switched on and understand a bit more. My point is that I feel some of what David says makes sense to me - probably because I'm not economic-literate, so Uncle Chris is right: David does, on the whole, express the "normal" fears and beliefs of the masses. This is good because then you experts can chime in and give your views which adds to our (the less-educated) understanding.