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Why is our stock market worried about European markets? Options
pljames
Posted: Thursday, June 23, 2016 5:31:34 PM

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What does the European market have to do with the American market? Curious-Paul
jacobusmaximus
Posted: Friday, June 24, 2016 3:26:59 AM

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pljames wrote:
What does the European market have to do with the American market? Curious-Paul


The European Market consists of more than 500,000,000 people, many of whom buy stuff from the U.S. In poor Market conditions the Europeans can't afford to buy goods from America, so Americans lose jobs. Out of work Americans can't pay their mortgages so the Banks are adversely affected.

I remember, therefore I am.
Blodybeef
Posted: Friday, June 24, 2016 5:36:53 AM

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Well said, Jacobus.

The world has become smaller as international trade increased.

When there is flooding in Indonasia, prices of liquid soap increases.
When a coup occurs in a west African state, chocolate prices increase.
When UK leaves EU, US exports fall.

“Integrity is doing the right thing, even when no one is watching." ― C.S. Lewis
IMcRout
Posted: Friday, June 24, 2016 6:24:07 AM

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By definition, any stock market is worried about anything, anywhere, anyhow. Pray

I totally take back all those times I didn't want to nap when I was younger. (Anon)
Hope123
Posted: Friday, June 24, 2016 8:46:51 AM

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IMcRout wrote:
By definition, any stock market is worried about anything, anywhere, anyhow. Pray


That is very true. Investors panic over the least bit of bad news. I'm not saying this is minor, but Carney says there will be blips at first but the Bank of England is well prepared. That man knows about which he speaks. The markets will get over the shock and come back. They always do - sooner or later. It will take years for the withdrawl to happen. Cameron has resigned.

The EU leaders have called for unity of the 27 other EU members asking them not to panic.

Equality is when you see a person - not a label.
NKM
Posted: Friday, June 24, 2016 7:47:33 PM

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We're concerned because it affects our money.

My IRA (Individual Retirement Account) lost some $4,000 in just over three hours today — and there's no doubt about the reason.

Tovarish
Posted: Friday, June 24, 2016 11:17:20 PM

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I have posted on another Brexit postings, that the Aussie Stock market lost, off stocks and shares, $56 billion yesterday, today being Saturday we

will not discover the following damage until Monday.

Mostly companies related to British holdings.
Hope123
Posted: Saturday, June 25, 2016 4:46:46 PM

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We personally 'lost' a lot too. But it is an 'on paper' loss. It will come back.

We've personally 'lost' money in the markets in the eighties, nineties, and 2008. We are in it for the long haul. That's the risk of being in stock markets, especially after retirement. But it always came back and grew a lot more. Actually, the Canadian Pension Plans are looking at picking up some bargains right now. I saw an interview on Yahoo Finance Canada of an advisor who said he is advising his clients not to panic but to sit tight but watch and if possible even buy. He said he expects the volatility to be over in a couple of weeks. I don't remember how he worded it - if that included the UK or not. I am trying to be positive and actually am not worrying about it.

However, I'm not sure how the markets will be by November if they get hit again by Trump getting in as president of the USA.

Equality is when you see a person - not a label.
Hope123
Posted: Saturday, June 25, 2016 6:36:54 PM

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Paul, I am making a comparison - If the fallout from the UK exiting the EU was this bad, think what will happen to an IRA - and world markets - in November if a volatile unpredictable Trump gets in. Just saying.

Canada weathered the 2008 recession better than the USA because our banks were better regulated. Trump proposes to remove the regulations put in place to stop that recession from happening again.

http://fortune.com/2016/05/18/trump-dodd-frank-wall-street/

Trump tweeted re Brexit, "Just arrived in Scotland. The place is going wild over the vote. They took their country back just like we will take America back." Lying - while not being aware that Scotland had voted to Remain. :) Take America back to the nineteenth century, maybe. Typically, he said when the pound goes down, it will be better for Turnberry, HIS golf course.

http://fusion.net/story/318640/delete-your-golf-course/


Polls suggest that Brexit won because the key issue was immigration - compare to Trump's policies. Net migration to Britain last year was 330,000 people, more than half from the EU. Studies showed that these immigrants contributed more to the economy than they cost. Right wing tabloids pushed the racism.

Farage admitted the mistake of "350 million a week to Brussels better used for NHS" slogan on a bus - but it is what people held on to.

Brexit, is now called Begret by some, especially those who say they didn't think through the consequences, and the young who say the old have limited their future opportunities. Fear, anger, and racism triumphed over self interest.

Sound familiar? The USA cannot say it has not been warned by Democrats, other countries around the world, and even by Republicans themselves, who won't even work on Trump's campaign, as reported recently.

Just as Cameron has only himself to blame, the Republicans have only themselves to blame for the rise of Trump. By blocking every move Obama tried to make (such as raising the minimum wage) they have created a block of young people who are against an establishment that can't get anything done, and who blame minorities for their problems.

Equality is when you see a person - not a label.
Drag0nspeaker
Posted: Tuesday, June 28, 2016 12:32:26 PM

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Hi Paul, Hope and everyone.

The first thing to realise is that newspapers and news-media in general lie.

The second thing is that when they lie, they work to make everything seem as dramatic, dangerous and generally BAD as they can.

If the UK had voted to remain in the EU, the papers would have been reporting all the bad consequences of that.

As Hope says, there have been market crashes and booms and what-have-you constantly - it crashed when many banks suddenly realised they had been investing in completely unreal 'loan agencies' a few years ago, it will crash again whatever happens in the US election.

It crashes when someone with HUGE investments manipulates it to crash, so they can make a profit.
There is no reason that US companies are suddenly worth less than they were, because the UK decided that in two years they will be out of the political entity called The EU. The UK will still have trading agreements with all the same countries it does now (and probably more). The same things will be exported and imported - probably more.

Trading on the stock-market is gambling - sometimes you win, sometimes you lose. You buy when the prices crash and it means a profit when they go back up again. If you make a loss, that's your fault for gambling.

I'm sorry, but as a working man, I have little sympathy for someone who loses money gambling with other people's finances.
Normal working people can't afford to speculate on the stock-market. If I lost £4000 I'd be bankrupt.

The stock-market is a game for people who have so much money they can gamble with and afford to lose thousands.


Wyrd bið ful aræd - bull!
Hope123
Posted: Tuesday, June 28, 2016 1:42:55 PM

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I agree with what you have said Drago, except for your last statement. We cannot afford to lose thousands of real money. You do that if you panic and sell low and buy high.

People are advised that the closer you are to retirement, the less risk you should take. But with bank interest so low, (they are talking the possibility of negative rates?! ) retired people have nowhere to increase or even just hold on to their capital except in the markets. It is taking a risk, but if you are in it for the long haul and have professionals looking after a diversified portfolio, the risk is less. We haven't contacted our financial advisor in years. We picked a good one and he does the worrying for us. It helps to have at least one person in a couple with a stable pension. :)

Our markets lost 400 points in two days, but our markets were back up again this morning. I bet it won't take long for them to recover. We cannot afford to actually lose that kind of money either - it is how you perceive the 'loss'. It is only on paper comparing the values of two days. As I said, it is a real loss only if you are managing it yourself and in trying to guess the markets day to day, buy high and sell low.

I'm not talking about the UK recovering quite so quickly - it may take longer to stabilize because there will be changes. But it will work out, different, but stable again.

Investors panic when anybody even sneezes.

Equality is when you see a person - not a label.
Hope123
Posted: Tuesday, June 28, 2016 1:56:43 PM

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I found this to be an interesting viewpoint. Because of the length, I was going to copy only a couple of quotes, but since he made so many good points I couldn't decide which. So I have copied the whole article in case one cannot get the link. I will post it on the other thread re Brexit too.

https://www.thestar.com/opinion/commentary/2016/06/28/the-uk-rejected-one-of-humanitys-greatest-achievements.html

Written for the Toronto Star by Joel Blit who is a professor of economics at the University of Waterloo and a senior fellow at the Centre for International Governance Innovation.

Equality is when you see a person - not a label.
Hope123
Posted: Tuesday, June 28, 2016 1:58:05 PM

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Joel Blit - "It was with sadness that I absorbed the results of the U.K. referendum on whether to remain in the European Union. As an economist, I can appreciate the economic consequences of a U.K. exit, both for the U.K., the EU, and for the global financial and trading system.

But this is not the reason for my sadness. This vote, and the eventual Brexit, will be but a blip on the global economic radar. The U.K. will negotiate trade agreements with the EU and with other countries, and in the medium to long run the economic consequences will not be severe. In focusing on the economic impacts of an eventual Brexit, we are all collectively missing the point.

The creation of the EU is one of humanity’s greatest achievements. Peoples who for centuries fought each other on the fields and in the trenches decided to put it all behind them and come together. They identified common objectives and put in place institutions and regulations to serve the common good.

In an exemplary show of solidarity, they established the structural funds and cohesion funds through which richer regions helped the poorer ones. They established a single market, allowing the free flow of goods, services, people, and capital across national borders. To facilitate this, they adopted a common currency and common external tariffs. They put in place environmental directives and regulations covering air pollution, water quality, waste management, nature conservation, and hazardous materials. They established a Court of Justice of the European Union and they developed common foreign policies.

In 2012, the EU was awarded the Nobel Peace Prize for promoting peace and reconciliation, democracy, and human rights. In the words of the Nobel Committee, the EU represents “fraternity between nations.”

Perhaps the EU’s biggest accomplishment is that a significant number of individuals began seeing themselves as citizens of Europe. The EU may not be perfect, but it is a gleaming example of how nations can break down barriers and come together for the common good. And in this era of growing international challenges it is a beacon of hope.

The world is experiencing global challenges of unparalleled magnitude. Since 2000, the annual number of deaths due to terrorism increased by a factor of nine. According to the UN Refugee Agency, the global number of forcibly displaced people now tops 65 million, or almost 1 per cent of the world’s population, and there is no end in sight to this crisis.

The concentration of greenhouse gases in the atmosphere is higher than it has been for at least 800,000 years and the Paris agreement is but a small beginning in our effort to address the problem. According to the World Wildlife Fund, the current rate of species extinction is between 1,000 and 10,000 times higher than the natural extinction rate.

By 2050, the world will need to feed 9 billion people and therefore we must not only increase food production, but also ensure that it is accessible to all.

Over the last several decades we have experienced massive economic growth, and yet because of increasing wealth and income inequality, the benefits have largely accrued to the few. The Panama Papers gave us a hint of why it is a difficult problem to tackle by one nation alone.

All of these challenges require international collaboration if we are to have any hope of addressing them. But more than just collaboration, they require international governance: global institutions that bring peoples together and global sets of rules that can help address our mutual problems.

They require individuals of all nations put the past behind them, listen to each other, help each other, and build a common front from which to face all of these challenges. They require that we begin to think of ourselves as citizens of the world. And in this great lacuna of models for how this can be achieved amongst peoples, the EU stands as a beacon lighting the way.

This is why I am sad the U.K. voted to Brexit. Today, one of humankind’s greatest accomplishment was weakened and the path ahead, not just for the U.K. and the EU but for all humankind, grew dimmer."

Equality is when you see a person - not a label.
Drag0nspeaker
Posted: Thursday, June 30, 2016 9:40:38 PM

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Hi! I actually wasn't meaning you or NKM, really.
The real 'culprits' are the type who actually fit into the original definition of "Capitalist" - producing nothing, but making a profit from buying and selling capital (money).
The type whose total "work" is manipulating currency and stocks, who never actually DO anything.

*****************
I understand what Joel Blit is saying - but it seems (to me) to be a very superficial and narrow view.

The single market was already there decades before the EU appeared.
Arms agreements were made immediately after the war (1946 or so) - some of them were faulty and have been re-negotiated, and so on, but they exist, outside of the EU.
The British Empire was unnecessary - it did not need an uber-government in London to run Canada, Australia, NZ, RSA and India. They have relations and agreements amongst themselves, they are allies, they trade. A central government just built up grievances.

He wants one world government - it's a high ideal.
But just think, if it is to be democratic, more than half the population of the world live in South-Eastern Asia.
One world government would be dominated by the PRC and their communist allies.

"The EU may not be perfect, but it is a gleaming example of how nations can break down barriers and come together for the common good. "
Forty years before the EU existed, most of the European governments, plus ANZO and Canada came together for the common good to oppose one crazy dictator. There was no government above them all forcing them to do it. They did it as allies. The USA joined in eventually, too.

They require individuals of all nations put the past behind them, listen to each other, help each other, and build a common front from which to face all of these challenges.
It doesn't need a Federal government to make people cooperate. They can work together without some 'authority' putting duress on them to do it.


Wyrd bið ful aræd - bull!
Tovarish
Posted: Sunday, July 03, 2016 1:35:58 AM

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No idea, fat lambs are at a record high $230 live weight, and cattle are over $2000 per head depending on body weight.
Tovarish
Posted: Tuesday, July 05, 2016 2:43:28 AM

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Well that seemed to put a halt to the discussion, my comments were to remind everyone that a Stock Market is different things to different people.

Our Stock Markets are just that markets where we sell stock, or animals not paper.
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