stock market crash

[_V_]

Just bought into the dip in the market, I think this could go lower but I've bought at a 5 year low for the share I was after. I think a lot of the disruption is starting to get priced in now, if the virus blows itself out by the summer the economy should start turning a corner.

The prediction is that peak Covid-19 will be sometime in April or May. Until then the stock markets around the world will tulip a brick everytime something bad happens.

I might miss the absolute bottom of the markets, but I won't pile in until either the helicopter money is falling on the lawn or the global case counts are falling and it's back to good news times in the media....

[scooterscot]

Futures on US, UK and European markets all down around 4% to 5% at the time of writing.

Oil down 22% due to russia refusing to cut production and leading to Saudi increasing production and launching price war

The more and more China industries are switching off... wouldn't be surprised if we wake up in the morning at $20 a barrel.

[sirja]

The more and more China industries are switching off... wouldn't be surprised if we wake up in the morning at $20 a barrel.

The massive drop in oil is much more to do with the price way launched by the Saudi's. If that persists it'll actually act as a form of short term stimulus to the Chinese and western economies. The US shale producers will take a hit as they need oil around $50 to make money

[scooterscot]

Can't see cheaper oil stimulating the economy when no bugger wants to go into work.

Like the soy farmers, the US oil producers are soon going to be out of work if this price war goes into April. Almost like Putin is deliberately trying to crash the US economy.

[DealorNoDeal]

The US shale producers will take a hit as they need oil around $50 to make money

And, more importantly, to avoid defaulting on a mountain of debt.

[scooterscot]

And, more importantly, to avoid defaulting on a mountain of debt.

Absolutely, US corporates are up to their eyeballs in debt. Perfect storm is brewing.



Breakfast at Putin's place this morning be like...

[SimonMac]

[scooterscot]

75 minutes to go...

If the market closes with that last candle intact without climbing to 6200, then tomorrow is going to make Monday look like good day.

[PlanB]

75 minutes to go...

If the market closes with that last candle intact without climbing to 6200, then tomorrow is going to make Monday look like good day.

The next big shock on the horizon is 2 weeks away when we go full Italy. How much of that is priced in it is hard to tell, we may also start seeing some major business failures. Chances are we are going to stagger along as we are for another few weeks until we are in the eye of the storm.

[scooterscot]

Agreed. Many businesses are so levered up that any interruption to cashflow will F£$k them up.

I remember reading in the SJD accountancy handbook when I started my contracting career "the majority of businesses fail through poor cashflow management". That sentence stuck in my head ever since.