One expert expects an ‘ugly decline’ in stock starting very soon. Emerging markets are declining rapidly and liquidity in the market is tightening. Overall, it seems that it’s been a fair summer for investors in America. Yet, there’s bound to be some hesitation in knowing that Yellen is about to raise the rate in the Fed. Or will she?
Look east to China to see which way the storm is coming, since China’s stock market has felt its greatest losses since 2007. The market remains jittery after a very shaky month of July.
Don’t panic just yet, however, if you dare to stare outside of the United States, a crash is already taking place. Many experts keep harping that the markets are rigged and it’s just a matter of time before humpty dumpty comes tumbling down.
There seems to be an illusion of healthy markets in the good old US, but this illusion is beginning to reveal cracks in the flood walls. The floodgate may be about to open, and then a drought will surely be in the future forecast.
After viewing the scary graphs and digesting the hard-hitting analysis, it’s hard to be optimistic. There’s trouble in the oil arena also. The US oil price hit a 6-1/2-year low because of oversupply. Oil prices may be the reason for the low bidding in the Gulf of Mexico.
Currency wars is a movie coming to the theater near you, as China devalues the yuan, falling to its lowest level in 20 years. Currency war intensifies is certain to be the sequel, while NATO soldiers hold military training in Yavoriv should be part of the evening news.
Be sure to stay tuned in for the next episode. Namaste.
UPDATE Fri Aug 21, 2015: Dow Falls More Than 500
1. China fears hand Wall St. its worst day since 2011 — Reuters
