maybe it is just time that everybody is throwing in the towel?
2007-02-27 07:28:18 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
People were looking for a reason to sell as the market has been on a very long bull run.
Greenspan spoke a while ago, so I wouldn't attribute that much to his words, though in concert with the other things, I could see his words having an impact.
Today didn't have anything to do with Cheney or mergers. It was mainly due to the china sell off, along with the japanese and european sell offs. Since we'd been in a decent bull run, several people were pretty well margined.
Soo, starting the day with selling and continuing it with some downward pressure, the "other" things like greenspan and "overpriced" stocks came to mind. However, as the selling continued, I suspect it was margin calls and people then jumping onboard which really fueled the extended selloff. Since people were levered, they then had to liquidate some positions in order to meet margin calls, which then helped continue the downward pressure.
Lots of technical sell signals were triggered as well, esp during/right after the little "glitch". All in all, not as bad as the numbers would indicate.
Pretty neat stuff!
2007-02-27 08:50:57 · answer #1 · answered by Yada Yada Yada 7 · 0⤊ 0⤋
Greenspan's comments just made everyone a little more jittery. The market has be fretting over a correction for over a month since this is the longest period (until today) that the market has gone without a correction. The Chinese markets kicked off the correction by going down 9%. Don't throw in the towel. There was a huge correction in the market in May/June 2006 and the market still had a record year. Corrections is where you make your money, by buying more stock while it is down.
2007-02-27 15:42:33 · answer #2 · answered by amykins89 2 · 0⤊ 0⤋
Probably a multitude of issues, instability in the middle east, the stagnating dollar, increasing loan defaults, etc. I don't think the US economy is nearly as strong as the Wall Street cheerleaders have been recently promoting it. A lot of our nation's growth has been based on borrowed money. It's probably too early to tell if this is a one-day correction or the beginning of a larger trend. It will be interesting to see how the markets respond tomorrow, especially China's.
2007-02-27 15:38:58 · answer #3 · answered by Reno M 3 · 0⤊ 0⤋
I think the drop in the Chinese markets will have had a greater effect than Greenspan's words. After all China is driving worldwide growth at the moment and any slowdown is worrying for investors.
2007-02-27 15:37:14 · answer #4 · answered by idler22 4 · 0⤊ 0⤋
Much more to do with the economic policy changes in China...like our politicians, someone there "decided" things were going " too good"
All in all it's a 3.5% drop...and that is manageable to most investors...just a few months gains down the drain.
The naext few days will be very important...if the " bargain hunters" start picking up stocks at suddenly "cheap" prices we can start recovering quickly....but if everybody is still watching China...could get a little worse.
2007-02-27 17:48:05 · answer #5 · answered by jebediabartlett 6 · 0⤊ 0⤋
Housing defaults would have had little to no impact on the market today.
Greenspans words would have also had little to no impact.
The Chinese governments have suggested that they might place restrictions on the amount of investment they allow. This caused many investors to reduce/stop investing in the chinese markets. It is this combined with mining reports from Africa about that caused the fall in the markets.
2007-02-27 15:43:22 · answer #6 · answered by Anonymous · 0⤊ 1⤋
You are aware a suicide bomber attacked the Vice President of the United States of America today and killed 23 people, right?
2007-02-27 16:37:48 · answer #7 · answered by Anonymous · 0⤊ 2⤋