So, the stock market has dropped anyplace from -250 to -332 today.
Oil is down, almost to $39 and some change.
I hate to tell you, it is China. Unfortunately, this is a global market. There are 1.3 billion Chinese and they are driving the world economy right now.
They markets are down and the Chinese government is artificially propping up their market to keep it from dropping even farther. That is something the American government will not and cannot do. ( illegal)
To make matters worse, the Chinese have devalued their money in an attempt to control capital outlays....
As China's economic miracle unwinds, rich domestic investors are tempted to take their money overseas.
By devaluing its currency, China's central bank makes doing this a lot more expensive and so the country can keep hold of its wealth more easily. That's the plan at least.
Once again, the Chinese economy is sick, and we are catching a cold. I'm not going to be shocked if China devalues their money another 10%.
Hang in there. Don't panic if you're in the market. Remember, long term...
My concern right now is oil and to a perhaps a greater extent, natural gas. N- gas maybe over produced. If so, it might really hurt Shell and Chevron. Those two are about to overproduce gas for the demand.
Keep an eye on this mess. Once again, teacher retirement is invested heavily in oil stocks, so I am concerned there....
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