24/08/2015 stock market crash

[MarkJ]

I couldn't find another thread about this. About today's stock market crash, Gordon brown's ex adviser is saying to stock up on tinned foods. Scare mongering, or good advice?

https://www.huffingtonpost.co.uk/2015/08/24/black-monday-great-fall-of-china-response-hysterical_n_8031374.html

[Yorkshire Geek]

Scare mongering, although every share I own has lost in the last month

[Pigeon]

I did exactly as he said in 2008-9 because of the collapse in the dollar and UK banks + then several rounds of QE. Potentially, at the time, it meant massively rising commodity prices as inflation was exported around the world and a home currency unable to absorb that impact.
There would have been huge layoffs and massive civil unrest. And we imported 90% of our food!

Price inflation was bad, but not German 1920's bad!

I ended up eating a lot of canned food during 2010-11 before it went off

Everyone has known that China's growth figures have been 95% complete BS, but it's taken a long time for people to blink.

The crash in oil price was demand led (as well as maintaining output). China's demand fell. Then their PMI fell (as measure of manufacturers activity and guide to demand).

The USA then started to switch to something like 1/3 or 2/3 of company financial updates missing targets.

Too many ducks all getting in a row to be ignored.

That said, we've sunk nearly 10% in 3 days. Given we import a lot of shit from the far-east, trade with the EU and have our own currency and UK PLC is doing alright(ish) for the minute. A 10% drop seems excessive in the short term.

Don't get me wrong, we and everyone else are screwed, but I would be surprised if we get to FTSE 4500 before Christmas. That isn't to say we won't of course.

I'm thinking a small bounce will kick in. At least that's what I'm hoping for, put a few £ on it. Especially as the chances of a rate rise have been dramatically crushed and there is a chance of more QE / a further rate cut.

[Yorkshire Geek]

Bounce back this morning, I'm interested to see where my latest investment (Aberdeen Asset Management) goes now. They specialise in emerging markets so hoping they'll find a way to profit from the falls.

Buy when everyone is selling, sell when everyone is buying. The advantage of being a long term investor is not having to worry too much about corrections, bear markets, and whatnot - 10 years time I'll be up anyway.

[Pigeon]

I'm out. Got my bounce, walking away.

Good luck!

[Rogerborg]

Trolling for talk show fees.

If the UK economy collapses to the point where we actually need bottled water and canned goods for a month then the living will envy the dead. At that point you'd be better off with a barbeque, a lump hammer, and some fragile but edible neighbours.

Once the piles of rotting corpses are bulldozed into landfill, house prices would come down a bit. So, silver linings.
____________________
Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike

[Suntan Sid]

[mentalboy]

Thank God for spring water supply and a large veg garden

Would say but I haven't got any

[unitynotsocri...]

Don't fall for the ' its because of China' crap. The derivatives market has begun to implode and trillions of derivatives will be unpaid\ not honoured.
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nearly a normal tax paying tosser.......with ferrileness suzi100,cg125,cb125scb100n,cb175,cd100,cj250t,kh250,c15,125 bantam,super 6,rickman gs750,xt500,250rs,dt175,lifan125,dolomite1850,metro,Morris220ld,morrisfg,leyland princess,range rover,corsa,vw camper .now struggling with legs. MORE ORDER = MORE CHAOS

[Rogerborg]

And yet, somehow, the world will keep on turning, and people will keep on making things and trading them to each other.

Fess up, you doom merchants want it all to fall apart just so that you can intone "told you so".
____________________
Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike

[Pete.]

Half the reason why it falls apart is because people say it's gonna.
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a.k.a 'Geri'

132.9mph off and walked away. Gear is good, gear is good, gear is very very good

[Rogerborg]

Some of them are literally betting on it.
____________________
Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike