Black Monday

[Beagle]

Here is something that could bring even more volatility to the markets over the coming months, especially is Russia launches its own operations in Syria.
http://m.nzherald.co.nz/world/news/a...ectid=11508956

And this deployment is a concern
http://presstv.ir/Detail/2015/08/25/...a-nato-Ukraine

[Daytr]

Perhaps, but there will be some who have been bearish for sometime and have made money from the move down.
Always a difficult time for those investors that are in the red, but is the nature of the beast.
Can't expect it always to go one way & just reminds people that with every investment there is an element of risk, especially in this Central Bank dominated global economic model.

Says a lot when the Black Monday thread is the main focus on share trader of late, lot of members ozzing red ink I'd imagine apart from the cashed up ones, sometimes silence speaks for itself aye.

[Beagle]

Shanghai market overall PE is extremely misleading. The market PE is 15.6 which looks absolutely fine.
But we have lots of heavy weighted bank with 6~7PE, 0.9~1PB !!

You really need to look at ShenZheng market. ShenZheng market doesn't have banks and it's mainly medium to small size companies(MC about 1.2 billion to 10 billion NZD).
The average PE is now 32.6 and PB is 3.6. The past 4 years 2011-2014 average PE was 26.7 and PB was 3.1
So overall we have financial sector is very cheap. Rest of the market is still expensive.

Good post and welcome to the forum.

[Daytr]

China opens down 1.5%.
2 mins ago it rallied 2% in as many minutes.
I was waiting for it. The government stepping in.
G20 over the weekend, could read em like a book! ;-)

[skid]

im not surprised they have bounced (by the Gov.)after all the celebrations--Its huge 1 or only 2 per year----All the chinese tourists were watching it on their computers at our hotel.
Guess the test will be when it gets back to the real reasons it happened in the first place---most markets will probably do better today(barring US which is on holiday)

[BlackPeter]

And this deployment is a concern
http://presstv.ir/Detail/2015/08/25/...a-nato-Ukraine

I agree - however I am not sure whether it is better to just let the Russians take whatever countries they please. As far as I remember - appeasement has been tried before, and it didn't work. Maybe time to invest into defense?

[skid]

Says a lot when the Black Monday thread is the main focus on share trader of late, lot of members ozzing red ink I'd imagine apart from the cashed up ones, sometimes silence speaks for itself aye.

Are you surprised at that?----Im sure if markets recover and go on their merry way,the thread will become very quiet indeed---but dont hold your breath---Its perfectly natural something had to give with an overvalued market--(of course they will do their best to tinker with it to get it running again----for how long?--well thats the question.

[Dentie]

Maybe time to invest into defense?

...or Attack?

[twotic]

Except it matters not what the Fed do - they are not the bank in control any more. We are in Quantitative Tightening mode already and there is nothing the Fed can do about it.

http://www.bloomberg.com/news/articl...-reserves-fall

KW are you just regurgitating what that article says, or do you actually believe the FED has no influence these days?

[twotic]

I already had made this point last week before that article was written. The idea that the central banks have lost control and run out of ammunition is not a new one. Its what happens when we live in a global economy where every market is connected - you cant just do your own thing in your own country and not expect other countries to be affected or retaliate.

OK, I haven't read your earlier post. It just sounded like you were saying the FED has no influence anymore. But I agree, control is a different thing and it appears unlike the last few years, there are many other significant things at play other than the work of the FED affecting asset prices. That's not to say that if the FED holds rates there will be no reaction though, which is what I read you as saying earlier.