Today’s Bloomberg News Headlines are Screaming at the U.S. Stock Market.
It is time to speak to your financial adviser about your financial investments. The business news website Bloomberg is today screaming at the U.S. stock market. Almost all the news headlines are dedicated to the mini stock market crash that happened in the U.S. yesterday. Here are a few of the headlines.
- https://www.bloomberg.com/news/live-blog/2018-02-05/asia-markets-open-after-u-s-stocks-plunge
- https://www.bloomberg.com/news/articles/2018-02-06/what-on-earth-happened-to-stocks-here-s-where-to-cast-the-blame
- https://www.bloomberg.com/news/articles/2018-02-05/stock-plunge-seen-deepening-in-asia-as-u-s-slides-markets-wrap
- https://www.bloomberg.com/news/articles/2018-02-04/asia-stocks-brace-for-selloff-bond-rout-deepens-markets-wrap
- https://www.bloomberg.com/news/articles/2018-02-05/stocks-may-tumble-10-but-hang-in-there-141-billion-fund-says
- https://www.bloomberg.com/news/articles/2018-02-05/market-rout-lops-114-billion-from-fortunes-of-world-s-richest
- https://www.bloomberg.com/news/articles/2018-02-05/bad-day-turns-terrifying-as-dow-suffers-worst-point-plunge-ever
The U.S. economy is the largest in the world. The USD is the global reserve currency. A stock market crash in the U.S. can very easily transform into a global currency crisis. Here is how;
You may have heard that a number of central banks around the world printed money to support their respective economies when they were in crisis. This money was eventually absorbed by the stock market because people invested their surplus money in the stock market. Bitcoin also did its share of absorbing excess money from the economy but government crackdown on cryptocurrencies has again squeezed money out of bitcoin. Real estate also absorbed a lot of this money. This is the reason why we are seeing sky high property prices.
If the U.S. stock market bubble pops, money that is in the stock market will have to find another sanctuary. Money looking for things to buy causes inflation because price stops being a concern. The overriding concern now becomes offloading the money. Inflation will then grow into hyperinflation and the value of money will be destroyed.
Central banks will respond by raising interest rates. High interest rates will take their toll on the credit market and it will collapse. Collapse of the credit market will contract money supply and cause deflation.
It is time to have a candid chat with your financial adviser. Let him show you how to walk your portfolio through this very challenging financial market cycle.