Bezos lost $8.2 billion
The U.S. stock market is undergoing a record collapse. For the entire 2018 correction with such a disadvantage was still. The technological NASDAQ fell on Wednesday is 4.4% – a record since 2011, the S&P500 lost 3.1%, the Dow Jones was down 2.4%, the NASDAQ stock exchange.
The trigger for the market have become several factors: disappointing reporting of several large companies, including Telecom giant AT&T. as well As the global sensitivity of investors around the world: at any moment they can begin to sell shares, fearing the consequences of a trade war and the deteriorating situation in the global economy.
Among high-tech companies the largest decline was Netflix, which lost 9.4% of the shares (the largest one-day drop since July 2016).
“The Federal reserve system of the USA for a year sells securities from its balance sheet, previously accumulated in the course of the long process of QE. Gradually increases the amount of treasuries in circulation, because the Ministry of Finance continues to place new bonds, but they are not excessive demand. In November, the fed will have to repay a significant amount of US Treasuries, that is, the process of absorption of dollar liquidity will be removed from the market about $60 billion to the Treasury takes more dollars than before, because I need to work with the budget deficit. This means that the “dollar vacuum cleaner” will only gain power as contributing to strengthening the position of grinbek, and to decrease the amount of free liquidity on stock exchanges. The market is becoming increasingly fragile,” commented senior analyst at Alpari Anna Bodrova.
- Amazon, Google, Facebook, Microsoft has lost at least 5%. As the richest man in the world, Jeff Bezos declined to $8.2 billion in Total, the largest businessmen have lost $33 millliard.
- Bloomberg writes that to push the market to collapse would the situation on the housing market in the United States. On Wednesday afternoon, October 25, the United States posted a report that new home sales declined by 5.5%. Housing demand falls due to the fed’s policy, which is gradually tightened.
- Traders worldwide are in turmoil, when the market is adjusted even slightly, leading to massive sales. Investors are no longer counting on global economic growth, particularly pressing on them the factor of a trade war. Most doubt increase the profitability of technology companies – apparently, their growth has already peaked.
“Many went to the (increasing) market in January, thinking it would be easy money, and then survived two mass ruin of small investors. People start to get nervous,” said Bloomberg Scott Maynard, head of the investment company Guggenheim Partners.