WTF Just Happened To The Stock Market?

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George Soros books

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My Other Channel: @HowHistoryWorks

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#finance #blackmonday #stockmarket

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On Monday the 6th of August the S&P 500 opened down almost three and a half percent with the Nasdaq down FOUR percent and other global markets down by significantly more than that. [put up the google 5d graphs for S&P 500, NASDAQ, ASX 200, Euro N

Markets like the Nikkie 225 are down over TWELVE percent, and Taiwan’s main stock Index having its worst day in HISTORY.

This followed a weekly trend that has seen TRILLIONS of dollars wiped off markets around the world and fingers being pointed at Japan, the Fed, greedy wall street traders or really whoever else people want to blame when things go wrong.

And then just to prove that nobody fully understands what is going on… just one day later markets across the world rallied almost covering the losses from what people are now calling the new “Black Monday”.

Since you should expect a lot of YouTube thumbnails with red graphs, laser eyes and (so so many) flames in your immediate future now is probably a good time to ask… what is happening to the stock market… right now?

Japan’s economy has been stagnant for more than three decades now, and the Japanese Government along with its central bank has been trying to change that by keeping interest rates extremely low, even going NEGATIVE between January 2016 and January 2024.

It was hoped that these low rates would encourage local borrowing boosting the domestic economy but when that never happened the Bank of Japan almost became stuck offering these low interest rates because any increase would further slow down an already sluggish market.

It might not have done much for Japan, but investors took advantage of these low interest rates by borrowing money in Japanese Yen and then either investing in Japan, or more often exchanging Japanese Yen for another currency like the US Dollar and investing in asset markets here in America.

Since stonks only ever go up investors could make money on the spread between the low Japanese interest rates and the higher returns they could get in the market.

dropping in value relative to the USD so investors could make EXTRA money on the foreign exchange exposure if they didn’t hedge against it.

Like all good things, this worked well until it didn’t…

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We didn't even have a roaring 20s, what a lame century.

alezacrespublik

You: “Don’t take advice from people on the internet.”

Fact: you are on the internet.

Interpretation: Don’t take your advice.

Conclusion: Get advice from people on the internet.

Trivial_Whim

My 8th "once in a lifetime" economic collapse and I'm only 30. Future is looking great

NoMoreCrumbs

I'm no longer confident in my investment strategy due to the impending recession. I aim to reallocate my $250K portfolio. What's the most effective strategy to do it right?

c.t.u.o

I can say after watching this video, this truly is an economy of all time

rob

I find it confusing because although we are informed that the stock market will crash, we are also given advice on how to invest in it. Paradox or oxymoron? I'm thinking of spending more than $70, 000 but I'm not sure how to reduce risk.

ericwilde

I assumed a bunch of wealthy investors (companies/people) sold off in mass to scare other investors to sell, radically dropping stock prices, and then the original wealthy investors just bought back everything at a lower price.

zvmZvm

As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?

Jennifermertians

“Studies show that consumers avoid products with AI”

“Every 60 seconds in Africa, a minute passes”

igabe

whoever is calling a 3% drop a black monday .... smh... if it was 30% i'd get it...

TheHighborn

Tldr: “how dare japan fix its economy that we have used to help evade taxes and interest for thirty years. Their suffering was holding up our entire stock market!”

billyj.causeyvideoguy

I bought stocks on friday (first time since 3 years ago), monday morning I see "The whole world is burning" on the news. I felt a bit silly but then I just bought more stocks and now I'm in the blue lol.

nickburningleaves