Last week the dow broke 4 major resistance lines. The fundamentals point towards a cooldown in the world economy, aswell in the US economy. The interest rate was a trigger for the downwards movement, but as it seems now the downwards movement has developed its own momentum and pushing the dow further in the red.
Are we seeing a crash at the beginning of the year? that wold be a very rare thing as stock echanges usually dont crash in years beginning. the dow lost 9,6% since new years and 13% since its last high.
Chinese real estate bubble pulling the world economy down?
Shandhai composite already crashed badly this year. Rest of asia damaged aswell.
In china we see exactly the same thing which happened before the great depression of 1929.
among other symptomes:
Overproduction
overheating of the economy
excessive gambling on stocks
Any thoughts or ideas from anyone here?
(Disclaimer: a crash of a stock exchange is considered crash after the index looses 20% of its value withing less then 3 months)
