Black Monday for China, Worst Day Ever for US Stock Market Investors

Black Monday for China, Worst Day Ever for US Stock Market Investors

Seems like we are experiencing the domino effects from China’s stock market downturn. But it’s not just Chinese and US markets that are being affected. The entire world seems to be suffering and having what some term the worst day ever. For the Chinese market, investors are have been hit with the greatest plummet since 2007. In fact, today is being labelled as “Black Monday” in China as the stock market records an 8.5% decline compared to 8 years ago! Things in Britain don’t look any brighter as the FTSE 100 is down almost 5%. This is the biggest hit since 2009 and accounts for a £74bn wipe off. What makes matters worse is that it appears as if this is the FTSE 100’s longest losing streak since 2003. Black Monday for China, Worst Day Ever for US Stock Market Investors

Investors are getting antsy and worried about the outlook. From the look of things now, it’s not looking too great. “Black Monday” is fast becoming a nightmare for US stock market investors with the Dow Jones having fallen by some 1000 points on Friday last, while the Nasdaq has taken a 8.5% nosedive. The tech sector appears to be the most affected with Tecogen Inc tumbling the most by a massive 23.5%. Other tech stocks that have been negatively affected include Lionbridge Technologies, Wayfair, Attunity Ltd., LogMeIn, Nuance Communications, ModusLink Global Solutions, Progress Software Corp., Alere Inc., and EMC Corp. The Dow Jones stocks that have been affected the most include E.I du Pont which is down at over 4.2%, JP Morgan Chase which is down 4.2%, Cisco Systems, Coca Cola, United Health, and Johnson & Johnson which are down between 3.6% and 3.9%. This marks the worst week for the stock market in the US since 2011.

The stock market is undergoing what is described as a market “correction” following the recent stock market high. A correction is said to occur when a stock index falls by at least 10% following a recent high. Although, this is not what any investor wants to see happen, a correction is not something that investors should be overly concerned about. In fact, corrections occur approximately once per annum and they usually don’t last for a long period of time. One thing about corrections that seems to be very troubling however, is the fact that corrections are not usually predictable. Despite this fact, long term investors need not worry about corrections since they will eventually subside and the market will return to “normal”. The good news for long term investors is that corrections present a great opportunity for investing in high quality stocks at bargain prices. So when stock market prices start rising again, you are more likely to record a stock market gain provided that the stock price continues to move in the right direction.

At any rate, investors are well advised to used this time to make a thorough assessment of their investment portfolios to satisfy themselves that they are moving in the desired direction.

Black Monday for China, Worst Day Ever for US Stock Market Investors