Not exact matches
World
stock markets skidded
further Wednesday as fresh
declines in crude oil prices stoked fears for the health of the global economy.
As of last week, the
Market Climate
in stocks remained characterized by an overvalued, overbought, overbullish, rising - yields syndrome that has historically produced periods of marginal new highs, slight
declines, and yet
further marginal highs, followed somewhat unpredictably by nearly vertical drops.
My opinion is that while there is still risk that the
market will
decline even
further, investors may be underestimating the potential for a rapid 20 - 25 % spike higher
in U.S.
stocks as risk aversion collapses.
But at the same time, the Fed's stimulative policies helped fuel a surge
in the
stock market, which, even with the recent
declines, remains
far above pre-recession levels.
So
far, it did produce another 50 %
decline in the
stock market in 2008 and early 2009 as a credit crisis
in 2007 caused the worst recession since the Great Depression.
One could try to argue that once a
stock market decline goes
far enough, corporate fortunes
in general are so poor that there is no longer any need to punish trusts.
Looking at TSLA's historical short interest chart and one can see that the negative investor sentiment or volume of shares sold short continues to
decline, a
far departure from June when Tesla was named the largest shortest
stock in the U.S. equity
market.
Those data do not yet reflect the impact of the
stock market decline since 2007: the drop
in the value of pension funds means
further increases
in employer contributions will be required to fund promised benefits.
Index funds do not offer protection from
market declines: when
stock markets around the world plunged during the tech wreck and again
in 2008, active mangers could move into cash and avoid
further losses.
(And later they don't want to increase their
stock holdings
in a bear
market because they don't want to risk
further declines.)
30 million units with a great tie ratio is still a hugely profitable console - and while the
markets may abhor the notion of a company's
market share
declining in this way, Nintendo is
far less
in thrall to
stock price than most companies
in this industry.