What cause the collapse of the stock market?

What cause the stock market to collapse on 9 March 2020?

a) The spread of corona virus in Europe and America?
b)  The collapse of the oil talk between Saudi Arabia and Russia?
c) TKL’s birthday?

I believe that the biggest factor is – hedge funds.

When the hedge fund sold the shares in large quantity, the rest of the traders falling. This led to a large decline. The momentum of the fall will continue for a few days or weeks.

When will the stock market turn around? It will be caused by the hedge funds. If they change their strategy and start to buy in large amounts, the market will turn around. This might be triggered by some positive news, e.g. agreement between Saudi Arabia and Russia, or the discovery of a vaccine against the corona virus. This will be helpful.

Sometimes, the sentiment will change just because of the large scale buying by the hedge funds.

Some people describe their activities as “manipulation of the stock market”.

Tan Kin Lian

 

 

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8 Responses to “What cause the collapse of the stock market?”

  • tan ah tan, dont be cock:

    1st, it is a secondary market. in other words, zero sum market. if someone makes, someone has lost. no two ways about the gain-loss.

    2nd, there is no expert in the market. the ones truly making money in the market, are those who get a commission whether there is buying or selling. these are the ones sure win. the rest, who falsely believe they know the markets or believe in market expert BS, sometimes make money in a rising tide but also lose money in an otherwise tide.

    3rd, nobody is bigger than the market. it is all herd reaction. if anyone is able to start a herd reaction the way someone desires, this someone has timed the market and shall make a lot of S$m.

    4th, there are those black bird specialists. these believe only in a downturn and lose a lot of money betting against the market and when the markets turn, like now, they make a killing, probably breaks even or even gain if they still have ammunition in the arsenal in the long wait for the black bird event.

    5th, so anyone writing on why markets up or down are generally cocks talking about hens aka nothing really new or significant.

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  • TruBlu:

    BANKSTER$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$!!!!!!!!!THATS WHAT CAUSES THE MELT-DOWN!

    BANKSTERS armed with SUPER COMPUTERS AND ALGOS AND DEEP INFO ON CLIENTS POSITIONING CAN DO ALOT OF DAMAGE to your accounts!

    INSIDER TRADING IS BEING CARRIED TO THE UTMOST IN TRUTH!

    IN any case,WHY SHOULD THE STOCK MARKET SKY-ROCKET TO SUCH EXTENT WHEN GLOBAL ECONOMY HAS BEEN AILING?

    FALSE PRICING BY ‘PUSHING’ AND GREED FACTOR ALL CONTRIBUTED TO THE SKY-ROCKET STOCK PRICE WHICH WAS SIMPLY IRRATIONAL EXUBERANCE,to borrow from GREENSPAN?

    AND,FEAR FACTOR causes the HASTY DOWNFALL?

    WHAT ELSE?

    GREED IS GOOD STILL???

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  • TruBlu:

    OH,AND DONT FORGET THE TRUMP FACTOR?

    probably,after PUSHING UP STOCK INDICES,TRUMP HAS INSTRUCTED HIS FUND MANAGERS TO UNLOAD BEFORE THE MARKET CLOWNS DO SO?

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  • TruBlu:

    AND,just after your account has been wiped out,THE MARKET WILL AGAIN RISE???

    RINSE AND REPEAT?

    ECONOMIC ANALYSIS?
    ALL GONE DOWN THE CHUTES!

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  • Sojoürner of Truth:

    The observation that stock and bond prices are both falling is a cash crunch, which seems likely, it means that the major actors in the economy, financial and real, are vastly over-leveraged. It therefore means that much as I had suspected for several years now, the vaunted economic management of the Trump administration has been built on a house of cards. The roaring stock market and low unemployment numbers were built on a mountain of debt and leverage, which always – always – turns out to be unsustainable and eventually crashes down. The recovery will be very long.

    I have said that when the first precipitous decline took place around the end of February and the beginning of March. It is “profit taking” by the American billionaire oligarchs. It is a redistribution of wealth within the stock market from those whose retirement funds were invested in the stock markets and University and non profit endowments to the American billionaires who have been selling either prior to or just as the decline seems inevitable under the cover of panic selling due to corona virus.

    Do you think that this stock market highs will continue to happen and your retirement portfolio continue to balloon? If you think that it will, you go ahead and take the risk of losing your life’s savings to a billionaire who is selling most of his stocks and sitting on his cash. But if you want to secure your investments, then talk to me.

    Stock market is a legalized ponzi scheme dependent on faith of the regular people that their investments will grow. But it also is infested with US and overseas billionaires who play the market to their advantage at the cost of the little gullible guys who get very little returns on fixed income or leaving money in savings accounts in the bank and are ready to take the risk for significant returns in stocks.

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  • patriot of TUMASIK:

    No lah!!! It is NOT manipulation it is THOSE BLINKING eyes leh!!! if it stops blinking the shares might rise again owing to CLEARER vision

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  • MarBowling:

    Think the CAUSE of the collapse is due indirectly to c) TKL’s birthday. The DIRECT CAUSE is due to several other factors. The 2008 GFC was NEVER say again NEVER SOLVE or RESOLVE at all by those bastards who were involved in the scheme of things! Period. They just KICK the can down the road. The Hidden Hands just pumped billions and billions of liquidity into the just collapsed global financial system to pop up the DEFLATED BUBBLE! From then onwards the BUBBLE become bigger and bigger, causing assets(esp housing) and stock markets to RECORD HIGH all over the world! In 2016, joker Trump arrived and became the USA President. He is one of the many Black Swans to appear from nowhere to HELP POP THE NOW MOHTER OF ALL BUBBLES! Covid 19 is the 2nd Black Swan to follow closely behind Trump!

    The 2008 GFC could be considered as peanut event because it involved and affected only a few countries. This time round, it’s the MOther of all GFCs that involve and affect hundreds of countries including the major players like USA, China, EU, Middle East, etc. in 2008, it involve mainly the US Subprime housing. This time, the Covid 19 is spreading to hundred of countries, causing panic and massive disruption to the GLOBAL SUPPLY CHAIN which will eventually lead to the SLOW DOWN PRODUCTION of certain essential FOODS and PRODUCTS by some important major exporting countries! It will take at least 6 months or a year or two before things can get back to normal. And this time round, SinKapore WILL GO INTO RECESSION sooner rather than later!

    To TKL,

    better to postpone your birthday celebration if it’s not due yet!

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  • oxygen:

    BUBBLE EVERYTHING INCLUDING DEBT until the pandemic strikes which is when Central Banks’ injection of liquidity (reads money) can’t solve anything because economy is grinding to a halt of both supply and demand interruptions (and hence no income to service debt).

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