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Market meltdown? Local professor explains stock market drop

Market meltdown? Local professor explains stock market drop


COLDER BY SUNDAY MORNING, SO STAY TUNED. STEPHANI A ROLLER COASTER YEAR CONTINUES ON WALL STREET. LET’S TAKE A LOOK AT THE NUMBERS. UP THREE POINTS, A LITTLE POSITIVE, BUT YESTERDAY THE DOW , JONES PLUMMETED 565 POINTS BEFORE REGAINING SOME OF THOSE LOSSES TO END THE DAY DOWN 249 POINTS. HERE TO HELP MAKE SENSEEOF WHAT SPARKED THE SELL-OFF IS DR. MICHAEL OLSHER WITH KEISER UNIVERSITY. THANK YOU FOR COMING IN. TWO — YESTERDAY, I GOT A LITTLE NERVOUS ABOUT THE NUMBERS FALLING. SHOULD I BE CONCERNED? WHAT IS GOING ON?>>THERE HAS BEEN A PRECIPITOUU DROP IN THE LAST DAY WEEKS TO FOUR WEEKS. NOT AN DROP OF THE SEVERITY IT WAS, THAT WE HAVE THINGS HAPPENING IN THE MARKET THAT ARE CLEARLY UNCERTAIN. UNCERTAINTIES, AS EVERYONE KNOWS, IS NOT GOOD FOR THE MARKETS. STEPHANIE: WE KEEP HEARING THE TWO CAUSES ARE CHINA AND OIL PRICES DROPPING AGAIN BUT ARE , THOSE THE ONLY DRIVING FACTORS?>>THERE IS A BIT MORE THAN THAT, BUT THE CHINESE IS AN IMPORTANT PIECE. CHINESE GROWTH IS SSOWING, BUT IT IS STILL THE BEST IN THE WORLD, SO WE HAVE TO GIVE THEM CREDIT FOR THAT STABILITY, FOR SURE. THEY’RE TRYING TO DO SOME GOOD THINGS AT THE ECONOMY. OIL IS A DIFFERENT CASE ENTIRELY. I DON’T KNOW IF YOU WILL FIND ANY ECONOMIST OR PEOPLE LINED UP OVER OIL TRADING AT $26 A BARREL. WE JUST REPORTEDDTHAT IT IS EQUIVALENT TO HALF A GALLON OF MILK RIGHT NOW. THAT IS OUT LOW PRICES ARE. WE ARE SEEING LOW GAS PRICES AND THINKING, THIS IS FANTASTIC, BUT IS THAT REALLY A SIGN OF A GOOD ECONOMY?>>IT IS A SIGN OF EXTRA MONEY IN YOUR POCKET BOOK. THAT EXTRA MONEY WILL NOT NECESSARILY [INDISCERNIBLE] A LOT OF FOR HEALTH CARE, GROCERIES, SO THIS $500 BEING SAVED BY CONSUMERS AND GAS WILL GO SOMEWHERE ELSE ALREADY. STEPHANIE: SO THAT IS NOT A GOOD THING, I AM ASSUMING.>>IT IS NOT A GREAT THING, BUT IT IS SOMETHING. THE MARKET ITSELF IS A PICTURE OF WHAT PEOPLE ARE THINKING MOMENT, THAT IN THE NEAR FUTURE. PEOPLE ARE CONFUSED, AND THIS CONFUSION IS THE CAUSE OF UNCERTAINTY THEY CANNOT MEASURE. AT THIS PARTICULAR TIME, THEY CANNOT. ON THE OTHER SIDE OF IT, IT IS FAIRLY HEALTHY. I WOULD NOT THINK THIS IS A TIME FOR 401(K) INVESTORS TO PANIC. STEPHANIE: THAT IT WAS WHAT I WAS GOING TO ASK. NOBODY CAN REALLY PREDICT WALL STREET, BUT IF YOU HAVE TO GIVE YOUR BEST ADDICTION, WHERE DO THINK WALL STREET IS HEADED?>>I THINK WALL STREET IS THAT A PRECIPICE. THEY ARE THE TECHNICAL POINT WHERE IF PRICES FALL MUCH BELOW WHERE THEY ARE IN TERMS OF THE DOW JONES, I THINK WE ARE NOT SURE WHERE WE ARE GOING TO GO. THIS IS A SUPPORT POINT AND I THINK WITHIN THE NEXT TWO WEEKS, WE WILL GET AN IDEA OF WHERE WE ARE GOING. STEPHANIE: DO NOT PANIC JUST YET.

Comments (2)

  1. His hair is amazing.

  2. Maybe he should mention all the DEBT. I spent my extra 20 Bucks a week on Beer and Pretzels.

  3. Harry Dent called oil's drop two years or so ago and has been has been steady on his predictions ever since. That's not all he has predicted and much of it is coming to fruition. I fear that we are in for some very difficult times ahead.

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