Will indices fall further? Understanding the mechanics of a stock market drop

[MongiIG]

Where are we in the big picture in terms of market lows? How much further on down could markets drop? IGTV’s Jeremy Naylor caught up with Ron William from RW Advisory. 

 

 

 

[phil3]

Hi, yes i do think markets will fall further unfortunately, especially the high PE US markets despite already being 21% and 33% down this year.

The UK should hold up better as more profitable boring companies can generate cash, but will still suffer a sell off.

We just need to hand on and brace for it.

https://www.money-mentor.org/post/what-is-stock-market-volatility

[MongiIG]

1 hour ago, phil3 said:

Hi, yes i do think markets will fall further unfortunately, especially the high PE US markets despite already being 21% and 33% down this year.

The UK should hold up better as more profitable boring companies can generate cash, but will still suffer a sell off.

We just need to hand on and brace for it.

https://www.money-mentor.org/post/what-is-stock-market-volatility

Hi @phil3 

Thanks for sharing!

Dow Jones and Nasdaq 100 suffering as Fed faces credibility test; will a 75-basis point rate hike, or more, restore risk appetite next? The markets now anticipate a whopping 75-basis point bump on Wednesday Fed decision instead of 50.

All the best - MongiIG

[muroze]

today's FED meeting will guide  us for the next couple of months, most of the investors are facing such a hawkish fed and high inflation period for the first time, when interest rate hikes are in the game the others are struggling, one should be ready to react fast and tight stop loss are highly suggested.

[Azeemulhasan]

Hi,

I do agree that Mkts will fall further and may go to the levels we had during Covid lockdown.

But I also hope recovery will start later this year or start of 2023.

BoE should increase rate by 0.50bp today, which is now highly possible because of Fed decision yesterday. 

[MongiIG]

6 minutes ago, Azeemulhasan said:

Hi,

I do agree that Mkts will fall further and may go to the levels we had during Covid lockdown.

But I also hope recovery will start later this year or start of 2023.

BoE should increase rate by 0.50bp today, which is now highly possible because of Fed decision yesterday. 

Hi @Azeemulhasan

Thanks for sharing!
Fed raises rates by 75 Basis Points in largest hike since1994 in effort to crush inflation.

Swiss Franc (CHF) spikes on shock SNB rate hike, this could put pressure on BoE to do the same and what the SNB decision has done makes the BoJ decision a bit more interesting.

Japanese officials including Kuroda are raising concerns over JPY weakness.

 

All the best - MongiIG

[Azeemulhasan]

Hi,

BoE increased rate by 0.25bp to 1.25%. this is below mkt expectations so mkt may react today.