stock market crash

[scooterscot]

Never mind the stock market. Can you let me know when Bitcoin is going to hit $100k, so I can buy a few? There's only a couple of months left before the end of the year. Inquiring minds need to know!

Soon my precious. Soon. Watch what happens when investors try to pull out of an overbought FTSE 100 and S&P 500 multiple trillion dollar sock market.

[GJABS]

The author even fails to mention the steaming turd in the room. Debt. Specially corporate debt. It's is at record all time highs, FTSE 100 businesses failing because left right and centre. Not a week goes by another is in the crosshairs.. The writing is literally on the wall and being ignored. Amazing times.

Corporate debt may be high, but interest rates are low.
The risk is obviously that interest rates may rise. However I think this would only be a problem if the debt was financed by variable interest rates. Which it is in the case of short term debt from banks. However if the debt was created by corporates issuing bonds to investors then the coupon payable on the bond is interest-rate independent. I don't know in what form most of the recent rise in corporate debt is formed - do you?

[TwoWolves]

DJIA -831.83 @ this moment.

Not bad for a one day decline and it's not market close yet. Guess stock buy-backs weren't such a good idea after all.

[scooterscot]

Corporate debt may be high, but interest rates are low.
The risk is obviously that interest rates may rise. However I think this would only be a problem if the debt was financed by variable interest rates. Which it is in the case of short term debt from banks. However if the debt was created by corporates issuing bonds to investors then the coupon payable on the bond is interest-rate independent. I don't know in what form most of the recent rise in corporate debt is formed - do you?

Interest rates are only one factor, the shear size of corporate debt is insane. The form of the debt is not as important as is who has been buying it. Central banks are the ones loading up on corporate debt and the proof is everywhere. One of my many sources:

YouTube Videos Sources - Google Docs

[scooterscot]

City boys this morning be like, don't open the market!

[scooterscot]

"First they ignore you. Then they ignore you. Then they ignore you. ..."

FTSE 100 back up to over 7244. The only thing head and shoulders is good for is dandruff.

Keeping my eyes peeled for a black swan. Then we can talk stock market crash.

Kaboom now chief?

[scooterscot]

Copper looking very bearish indeed. Yesterday's support is todays resistance, H&S forming over the weekly trend is indicating a plummet in price by mid-March next year, with continuation equalling to a loss of 80% from the ATH. Why look at copper? For whatever reason a drop in copper prices always precedes a recession. Perhaps the world is feeling smartphone saturation. Got to love how the H&S forms leading into 2007 - couldn't be any clearer and now the same thing is happening again.

[DimPrawn]

Copper looking very bearish indeed. Yesterday's support is todays resistance, H&S forming over the weekly trend is indicating a plummet in price by mid-March next year, with continuation equalling to a loss of 80% from the ATH. Why look at copper? For whatever reason a drop in copper prices always precedes a recession. Perhaps the world is feeling smartphone saturation. Got to love how the H&S forms leading into 2007 - couldn't be any clearer and now the same thing is happening again.

What next, the support and resistance of the price of fish?

[scooterscot]

Ah yes the bastion of British industry that is the fishing community accounting for less than 0.5% of GDP. Most of which is exported back to the EU anyway.

I predict great price reductions in the price of fish!

[original PM]

Copper looking very bearish indeed. Yesterday's support is todays resistance, H&S forming over the weekly trend is indicating a plummet in price by mid-March next year, with continuation equalling to a loss of 80% from the ATH. Why look at copper? For whatever reason a drop in copper prices always precedes a recession. Perhaps the world is feeling smartphone saturation. Got to love how the H&S forms leading into 2007 - couldn't be any clearer and now the same thing is happening again.

This should really be finished off with 'Thus says the lord'