Recently an article by Bloomberg has been circulating discussing a sever fall in US stocks is coming. You can read the original article here.
Naturally in our Investing chat we wanted to discuss this. Get some other peoples opinions, data, thoughts, and have a constructive conversation where we all come out stronger. Due to the ease of the app I was able to pitch in the discussion while walking downtown and be a part of the discussion in real time.
Here is how we got the ball rolling, a simple posting of the article to see what others thought.
Our amazing member baudwalk who is a retired gentleman and knows pretty much every single news resource for investing was first to pitch in. He wrote:
Re HSBC warning, ho-hum. Easy to say, as we are approaching a long in the tooth 8 year bull run. Easy to say, Fed will probably go with a December hike of +25bps that, although insignificant, will freak investors reacting to the populist business press coverage. Easy to say, as we have an alpha male versus a lying untrustworthy transformational progressive running for leader of the free world with unknowns in both camps. Easy to say, a 10% drop in the market is not a recession, but the populist press will cry doom and gloom. Rather, I firmly believe the smart play is effective sector rotation. I don't pretend to be an expert or knowledgeable, but my readings suggest a reduction of exposure of high flying sectors to more conservative defensive ones may be appropriate. Some suggest technology and telecommunications should be pared. See what your broker has to say. There are differing opinions on the safety of financials and health care, but that is what makes the world go around. Re telecommunications, I am standing pat. When is the last time you've seen anyone over 12 not have a cellphone in hand? :relaxed: Giddyup.
Our newest member, who is a financial consultant, private investor, and MBA graduate from Willamette University in Salem, Oregon with focus on finance and investments also gave us his own perspective with an image attached with some data.
Then we discussed how it would affect other markets like Canadian and Canadian real estate.
We are hoping to continue this discussion throughout the day so we may create another content blog post.