3 ms·
This. It is the massive liquidation of sovereign wealth funds that is causing markets to move lower. When someone is forced to sell, what happens to the price?
by siculars 11y ago
This.
It is the massive liquidation of sovereign wealth funds that is causing markets to move lower. When someone is forced to sell, what happens to the price? It tanks. There is no floor. Technicals take over. This coupled with expected negative earnings outlook creates a vicious cycle of downward trajectory.
- mcguire 11y ago"This coupled with expected negative earnings outlook creates a vicious cycle of downward trajectory." That's kinda my point: what negative earnings outlook? Lower oil prices means lower costs for every industry but energy. "Developed" markets are mostly oil-importers, and are still (as far as I know) the source of most industries' profits.