According to the analyst estimates, a close to half the shares traded is lower, arguing that the dependent titles of the oil market are the most affected in the market number, however, the argue that the world still is not in the presence of a bear market, as it is called this phenomenon, but is it really are in a dangerous edge that could push it into this situation.
The belief is that the world might fall into this phenomenon where most of the stock traded down is given by several of the factors that threaten to further destabilize the market.One of these factor is the collapse of the oil prices, the market symptoms do not show signs of a possible improvement in the short or medium term and continue to press on the international markets generating a mistrust among the shareholders who do not look kindly on an increase of this hydrocarbon production by the country of Iran or the country of Saudi Arabia’s refusal to make cuts that allows the market to rise again.
Furthermore the situation of the Chinese market also exerts pressure. The country of China has been forced to make some deep cuts in its economy after falling into a deep economic downturn that has affected the world market threatening to slip back into recession of the world, a situation very much detrimental to the stock market as the recovery slows and cause an alarm among the investors.An example of the impact that the country of China has on this market are the constant stoppages bags untimely because of the low trading prices generated by the distrust of the investors.
The United States of America case is uneven but also equally worrying. Although even the most important exchanges are not on a level that officially is in a bear market place, they are very close to it.It is said that a market entering a bearish condition after recording a decline of 20% (twenty) from its previous peak value, and the bags are still in 9% (nine) and even below 10% (ten), which is officially known as the stage correction, however they operate oil if they have fallen below this threshold in such a critical point as 77% (seventy seven) lower compared to its previous peak before, an overall average of 55% (fifty five) low and some have reached up to 80% (eighty) low compared to its previous peak above.
This can be taken as a warning about the future of the market and the global economic situation that becomes so complex and so worrying that there may be no output yet.Many things are getting worse from different sides of the economy, the excessive increase in the debt, the drop in the oil prices, the slowdown in the Chinese market, the general low on the prices of the raw materials, the low of the Euro and the Yuan against the Dollar and a rising latter that will bring further negative consequences for the growing economies.
This volatility has been caused worldwide, according to the experts; the Federal Reserve is more judiciously take its intention to raise rates and the dollar more expensive. The Fed made the decision in the year of 2015 as a measure that would successfully close a time of deep economic recession that the country experienced in the year of 2008 and which have managed to recover satisfactorily but forced to lower the price of the currency to stimulate the investment. The intention of the Fed is to maintain the same policy during the year of 2016 but according to the Invex Bank the situation for the country of China and the complex global scenario will exert pressure against their intentions to force them to be more cautious and moderate with these rate increases.
This possible precaution, says the Invex Bank, will come from the fear that this rate hike will end up destabilizing the international market and that the countries affected by these measures and are also beginning to adjust their rates in the touristic side thanks to the response to the rising dollar and will also be a precautionary measure against the effect it could have an economic change of a major world economic powers like the country of China, which will be a country of export economy to a possible situation of consumerist economy.
Although this augurs an apocalyptic results for the world, the hope and the optimism of the economists is high and still look unlikely that the world will fall into a state of dangerous recession although each passing situation day is worse in each of the markets, the situations that put pressure on other factors has aggravating them and creating a climate of anxiety and uncertainty.
This optimism goes hand in hand with the encouraging data that in some countries show that even a stable climate and have a positive horizon for the future. The United States of America for example foresees a slow but steady economic growth through the implementation of new policies as well as other countries will see a significant reduction of the debt and the overall growth.
An exceptional example of the tranquility and mettle against the crisis in the case of companies like the Netflix company, one of the few that has witnessed a rapid increase of its shares, is today a reference in international exchanges and serve as an example for investors every time they see with better eyes the opportunity to invest in the markets of the technological development and the digital industry is on the rise and represents an industry of nearly 831 billion dollars, if one takes into account only the three (3) largest companies as can be the Google company, the Facebook company and the aforementioned Netflix company.
In this way it is presented in the picture of a world that seems to show a downward trend because of the continuing problems that are facing the major markets.