Is there really a crisis?
I saw a chart on Bloomberg which rather amused me - so I have recreated it for you in this article. It is a chart that shows the bear markets in the MSCI world index since 1990. Interestingly we can name them all (see legend on chart) and the reasons they happened including; US recession, Asian financial crisis, the tech wreck, the global financial crisis, the Greek crisis. Then there is 2016, our market is down 21% and the MSCI world index is down 13.9% but no one has a name for it, or an excuse really. What are we going to call this bear market? The commodities rout maybe. Or the Chinese growth crisis. The quantitative easing headache we had to have. Or, as Supertramp fans might call it, the “Crisis what Crisis” bear market. It’s just begging the question, is there really a crisis?
Do we have an excuse for an Armageddon event because as Credit Suisse described it, if this is a grizzly bear market (falls 20% then falls another 20%) you need a reason. Otherwise it's just a great buying opportunity and I’ve starting taking out an option on that being the case. I’ll close it as soon as I’m wrong, but as you’ll read in the article, there are a number of reasons to suggest that there is now value in the market. The article also highlights the real problem with the market, the one thing which should spook investors, and it’s not a global growth slowdown. You can read the full article here: (VIEW LINK)
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Marcus Padley founded Marcus Today in 1998 and leads the team of analysts and market commentators that publishes a daily stock market newsletter, presents four podcasts and runs an $80m Australian equity fund. He is passionate about educating and informing private investors with insightful, honest, straight-up independent stock market research and ideas. Marcus likes to call it as it is without agenda, puts subscribers first, and this has paid off for real people with real money.
2 topics
Marcus Padley founded Marcus Today in 1998 and leads the team of analysts and market commentators that publishes a daily stock market newsletter, presents four podcasts and runs an $80m Australian equity fund. He is passionate about educating and...
Expertise
Marcus Padley founded Marcus Today in 1998 and leads the team of analysts and market commentators that publishes a daily stock market newsletter, presents four podcasts and runs an $80m Australian equity fund. He is passionate about educating and...
Expertise
Comments
Comments
Sign In or Join Free to comment