US share markets crashed yesterday.
Those in East Asia did overnight.
Now it is London's turn:
London markets are down 2% this morning and are still falling. This is their worst day since just after the war in Iran began.
This could get ugly, and there are no significant AI stocks on the FTSE.
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Have you seen this, Richard?
How Did Paraguay’s Fastest Growing Bank Become the Country’s Worst Nightmare? | naked capitalism
“Digital Banks” – what can possibly go wrong?
I looked very briefly.
As you say, what could go wrong?
I think this is a correction to an overheated market in the United States. Although they have fallen sharply over a couple of days share prices are still higher in most cases than the start of the year i.e. before the Iran war and despite recent concerns about AI investments.
The reality is that stocks and shares do well under anti-regulatory regimes. It is also true that stocks and shares are not the economy, and their gains in value do not reflect an improvement in the general wellbeing of the population.
We have been conditioned to see rising stock indeces as ‘good’ whereas they typically benefit the owners mainly, and a long rise inevitably ends in a market crash which then affects everybody negatively.
Privatised profits and socialised losses.
I think the downward trend might become very more significant.
Unless anyone can answer the question, who will pay a very great deal for AI, that is inevitable.
What is a normal daily rise – or fall in stock markets?
Maybe 1%. Often less.
Whilst I have no doubt your general predictions of a coming crash are correct I’m not sure that a 2% rise on Wednesday followed by some hesitancy on Thursday and unsurprisingly cautious end-of-week profit taking on Friday to end the week 0.5% down from Monday’s opening counts as a tumble. My limited knowledge of technical trading tells me there is resistance at 10,500 and that the real panic will not come until the index drops towards 10,000. Obviously that could occur very quickly and, as always, we will only know the truth after the event.
I’m not smart enough to be gambling on the stock market at present but am pleased to report that the potatoes we decided to plant after your warnings of possible food shortages are growing like triffids in this climate and we expect to be enjoying new-potato salads well before Christmas.