American stocks lost 33% of their evaluation in 1 month

>American stocks lost 33% of their evaluation in 1 month
>that's $2,500,000,000,000 in market cap

What does it mean for the rest of the world? Are we fucked?

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telegraph.co.uk/business/2020/02/13/airbus-sees-no-short-term-benefit-boeing-737-max-grounding/
twitter.com/NSFWRedditImage

why don't american call bubble economy?

Everyone will be better off in the long-term

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once this virus thing is over can't we just forcibly go the previous positiva values? I don't know the slightest thing about economy but I guess you can nuke whomever disagrees with the plan

I bought 1.000 Shell stocks for pretty cheap, hope I didn't make a mistake

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Finally a lot of zombie companies are going bankrupt which means more opportunities for budding entrepreneurs

I feel like I need to learn to trade asap to buy the dip.
It's obvious that the companies themselves are undamaged in the long term and they can keep making the products they provide.

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So my wage will remain the same and food will cost the same?

>a few lines on some american paper topples the global economy
lol

idk bruh it will probably drive down the world's demand for goods leading to less business opportunities, and probably bankrupt a few households / holdings in the rest of the world who invested in US stocks idk nigga i'm some trader

No

The Dow Jones is a price weighed index. It doesn't reflect every stock in the market

>get oil stocks for half price

What other industry is tanking heavily that will rebound for sure?

Every airline company is on sale right now

it's not like the US will let boeing go down

>Boeing lost 70% in price

wew

First that faulty plane shit, and now flights being banned. People can triple their money in a year's time maybe.

Boeing surely let's it's planes go down

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Then why "it's good long term"? Sounds like I'm getting fucked in the ass and I'll starve to death.

just wait until the Deustche Bank fail

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I've been thinking about buying Boeing as well
you sure the US government won't let them go down?

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Market cap is a bullshit metric

/thread

I've heard from Italians complaining about their airplane industry. It's a failing industry that's been given bailouts after bailouts and the corpse is being kept alive by their government. If that's true, there's no way Boeing, one of the biggest aeronautics companies out there, would be allowed to fail.

molecules of freedom are strong

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look at all these foreigner parasites trying to make money off america. you need us

I remember reading 50% of Boeing revenues were from US military spending. Don't worry, the US will never let such a strategic company fail.

Everyone comparing this to 2008 needs to consider it will take less time for the market to recover since capital loses are solely built around the shutdown of businesses caused by corona virus

Two completely diffrent matters the 2008 financial crisis was casued by lax credit standards allowing nearly every irresponsible person to be eligable for sub prime mortgage along with negaitve real intrest rates practically making borrowing money free. Investment Banks securtized homeowners mortgage paymetns through CDO's and Mortgage backed securites and sold them to investors, when the Fed's raised interest rates homeowners defualted on their payments causing a freenzy from OTC markets. Along with securites flooding the markets people did not no much about ( Credit Default Swaps, credit derivatives, naked postions in futures)


This current event is caused by the complete shut down of business with decrease demand for oil mixed in with the fact most US equites are not correctly priced ( Average US P/e before crash)

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Global stock market indices, which are supposed to track the whole planet in a balanced way, are > 50% US stocks. Can't help that you are so fat.

yeah I've been thinking that as well
plus they're one of only 2 major passenger plane manufacturers along with Airbus

Nearly 75 percent of all market cap for international equities are USA, UK and japan. But it doesn't really make a difference because markets become more correlated during crashes. It's one of the main issues of international diversification for a portfolio it doesn't work in the short run. During bull markets there is small correlation coefficnet, but during bear markets international markets exhibit large correlation coefficnets and negative co skewness.

Maybe is the operative term. I wouldn't put too much faith in a Boeing bailout myself.

Boeing has competition for military aircraft and they're currently fucking up the kc-46 contract. Meanwhile for passenger aircraft their only competition couldn't even take advantage of the 737 Max situation.
telegraph.co.uk/business/2020/02/13/airbus-sees-no-short-term-benefit-boeing-737-max-grounding/

>idiots that never traded are buying stocks
ngl, feeling pretty scared now

Not like it could fall too much more, right? If it does fall, you're not losing too much money compared to what you could make. Hoping for good fortunes.

It's just more get rich quick bullshit. Let them go bankrupt.

American era is over, it's time for our domination

No he's right that's the biggest issue. Uninformed investors destroys market effeciency, people taking positions for breif periods of time destroys market effeciency, people taking positions in securities they know nothing about destroys market effeciency.

The virus has shown us just how unprepared we are when facing a pandemic. I hope this would be a wake up call for future disasters.

The danger is the inverted population pyramid and the fact that much of the stock market is boomers' pensions, and if they all start cashing out with not enough young people to keep the price up, we could have a bear period that lasts decades.

It was always going to happen, Corona-chan or not. The market was way overvalued.

>strict border security
>cleaner air
>localized production and manufacturing
just let the whole house of cards fall. globalism is a mistake

Even style diversification isn't going to work now. Everyone is just going to treasury bills to salvage whatever sort of liquidity they can right now.

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The main reason to hold stocks right now is as a hedge against inflation, as a share in a business has an instrinsic value. Bonds are worthless in the long-run, they are paying interest that is lower than inflation.

10 years later we'll get another pandemic and people will still pretend it's nothing and government will still not prepare tests and medical facilities until it's too late.

Quarantine doesn't work if you don't have an authoritarian country that'll weld you shut.

Uhm no, the idea behind bonds is that they pay more than inflation. The only time this wouldn't happen is if there is a huge spike in inflation.

No unless you are buying TIPS ( which you are paying a premium for). Your return is not protected for inflation.

u wot m8, UK government bonds currently have a yield between 0 and 1% while the official inflation rate is 2%. Similar story across the whole developed world.

You should buy stocks now. It's not going to go any lower. Go all in. Let's see if I'm right.

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GM got a bailout and is doing reasonably well but shareholders still lost everything in the bankruptcy

>Let's see if I'm right.
Sure, let's go for it! All-in it is. It's only money!

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>It's not going to go any lower.

Which means fuck all to normal people.

fuck no, the opposite. It feel like even though it happend quickly it all unfolded smoothly

we're too interconnected and independent, there's no way to be prepared against SARS 3 or the likes

Already did, mate.
It's going pretty good so far.

Stock's looking good!

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*dependent

>be australian
>stock market just went back to 5 years ago
>playdough money is worth even less today

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that one's cool, but I prefer this one.

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At one point the Australian dollar was stronger than the US dollar?

Holy shit.

Stocks are way to volitale right now. People tend to view large loses worse than large gains. In times like this people prefer liquidity and government bonds is still the only security you can really take a position in with no default risk right now.

That's very cool, Bateman. But take a look at this.

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Fake

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>people actively mention an outdated PWI in 2020

What the literal fuck.

It's naive to think that governments will never default on their debt. Holding government bonds instead of precious metals as a hedge against default is beta af.

Damn. I thought it was real until I looked for it. Gonna send Trump an apology now.

> It's naive to think the government won't default in their debt

Any devolped nation like yours and mine literally has a zero percent default rate on their securities. It's why they don't have a dedualt spread attached when evaluating them and why short term t-bills are defined as the risk free rate

it's literally impossible the US lets Boeing go belly up
they initiated a mini-trade war with the EU only to protect Boeing against Airbus

Canada has a zero percent dedualt spread the UK is 0.4 percent

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This market is a shortists wet dream

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gotta love free market capitalism at work

>zero percent default rate on their securities

Why assume that the future will look like the past?