ASX down by 10% since August 2021

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Bobby
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ASX down by 10% since August 2021

Post by Bobby » Fri Jan 28, 2022 8:09 am

https://www.abc.net.au/news/2022-01-27/ ... /100786110



Stocks, collectively, trading on the Australian Securities Exchange, have entered a technical "correction".

A correction is a drop in stock prices of 10 per cent or more from their peak. By the close on Thursday, Australia's benchmark ASX 200 index was down 10.3 per cent from its record high set in mid-August.


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The trillion-dollar question is, when will the heavy selling stop?

Despite tens of billions of dollars having already been wiped off the local market, and trillions more globally, professional investor and author Danielle Ecuyer says there are likely further losses in store for those who remain invested in shares.

"Stock markets are increasingly gripped by a fear that four decades of successively lower interest rates is about to end, combined with geo-political risk," she explains.

"Then fear and selling begets more fear and selling.

"This will present another significant buying opportunity, but all technicals (charts of share price movement) suggest the bottom isn't in yet."
Inflation threat

Low inflation can be a dream for investors.

It affords central banks the ability to keep their monetary policies loose (interest rates low).

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Bobby
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Joined: Thu Feb 23, 2017 8:09 pm

Re: ASX down by 10% since August 2021

Post by Bobby » Fri Jan 28, 2022 4:49 pm

This year 2022 is risky:
war in Europe?
war in Taiwan?
Israel planning to hit Iran's nuclear facilities?
possible new variants of Covid?

We also have inflation at 7% in the USA.
They will stop printing money and raise interest rates.
That could cause margin calls on greedy shareholders
who borrowed to buy shares -
which could collapse the share market.

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