2007-03-05 10:34:38 · 6 answers · asked by confused 1 in Business & Finance ➔ Investing
It's done pretty much nothing but go up since last July until last week. That's not really normal. Ups and downs are normal, but with more ups than downs. I think what's going on now is that we're just dropping back a little to make up for it having gone up too far too fast in the last 7 months. I'm anticipating that by April or May, it will be on the way back up again. I'm not selling anything now. In another month or two, I plan to do some buying.
2007-03-05 11:24:06 · answer #1 · answered by Dave W 6 · 0⤊ 0⤋
Because China is trying to slow their growth from about 11% to about 8%, there is a fear of a general world slowdown. That would affect profits and thus the value of stocks. Selling first occurred in the Chinese markets and that carried over to other stock markets.
2007-03-05 10:49:00 · answer #2 · answered by huskie 4 · 0⤊ 0⤋
Basically two things have happened. First the sell-off had to do a lot with the fact that the Chinese market's assets were inflated and due for a market correction, given the overall lack of productivity vs. growth in the country.
In addition, you have the yen carry trade issue. The Bank of Japan's interest rate is 0.5 percent, which compares with 5.25 percent in the U.S. and U.K., and 3.5 percent in Europe. Japan's central bank boosted borrowing costs 0.25 percentage point last month. Foreign banks were borrowing in yen and short-term exchange-traded contracts to finance rising investments in Asia and Europe.
The problem, when the yen's value started to rise against the other currency, the euro, dollar, etc. The banks that borrowed from Japan had to scrambled to sell their assets to pay back their loans before their currency weakened and the yen grew stronger.
Many analyst see the Chinese economy as perfectly healthy and as suffering from a credit squeeze caused by the soaring yen, which rallied sharply last week and hit multimonth highs vs. the dollar and euro intraday Monday.
2007-03-05 12:24:19 · answer #3 · answered by amykins89 2 · 0⤊ 0⤋
Every one freaked out in china stock. Every one else freaked out then we freaked out. Now every one is selling to buy cheaper and a lot of people are short selling driving it down further. The best thing to do is wait till the CBOE volatilty gets below 13 to start buying for huge gains.right now would be insane.
2007-03-05 11:25:58 · answer #4 · answered by franksprung 3 · 0⤊ 0⤋
Maybe try stock-exc.com
2007-03-05 10:58:08 · answer #5 · answered by Anonymous · 0⤊ 0⤋
To paraphrase J.P. Morgan: It's fluctuating.
2007-03-05 11:04:59 · answer #6 · answered by BosCFA 5 · 0⤊ 0⤋