China Concerns Continue to Pressure Markets.

[Stubby]

I hear its going to be a bad year. I hope they are wrong but whatever you do, DON'T sell.

Stocks dropped around the world to start 2016, triggered by fears of even slower Chinese economic growth. This week's pullback is in response to focus on China's:
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[TD]Slower growth - Data showed further sluggishness in manufacturing activity and the services sector is expanding at a slower-than-anticipated pace. China's GDP growth has fallen below 7%, the economy's weakest pace since the Great Recession.[/TD]
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[TD]Steep stock market selloff - The Shanghai stock market fell more than 7% on Thursday, halting trading for a second time this week, just 30 minutes after the market opened.[/TD]
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[TD]Falling currency value - The Chinese currency, the yuan, saw its largest drop in five months, sending it to its lowest level in nearly five years.[/TD]
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What Does This Mean for the U.S.?
While the sharp U.S. market reaction is a surprise, slower Chinese growth has been an ongoing concern for investors. Similar fears in August 2015 prompted the first stock market correction in almost four years. In our view, stocks could drop further, but long-term investors should consider adding quality investments at lower prices. And bond prices have been rising as stocks fell, helping to stabilize portfolio values.

China matters more than in the past because it's the world's second-largest economy. But China is only part of the global picture, so keep in mind the following:
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[TD]U.S. economic growth is expected to continue near 2.5%, even if China slows further. In our view, the fundamentals, including earnings growth, support rising stock prices over time.[/TD]
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[TD]Europe's manufacturing sector expanded in December, a positive sign for better economic and earnings growth overseas in 2016.[/TD]
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[TD]Oil prices have fallen as heightened tensions between Saudi Arabia and Iran offset the impacts of still-sluggish demand and high production.[/TD]
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[TD]China's economy isn't contracting - but it's growing more slowly. China's stock market is speculative, and its decline doesn't reflect economic activity. And remember, Chinese policymakers have indicated they will take actions to keep economic growth around 7%.[/TD]
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[TD]Don't be surprised by more volatility in 2016. There are many sources of uncertainty that may prompt sharp market moves. Be prepared so you aren't caught off guard.


NEW YORK (AP) — U.S. stocks are moving sharply lower as worries intensify about China’s economy and dropping oil prices.

China’s main stock index plunged again Thursday as its currency weakened, triggering the second automatic halt in trading this week. China’s market regulator later said it would suspend the trading halts.

The price of oil sank to its lowest level in 12 years as traders worried that a slump in China, the world’s second-largest economy, would mean lower global demand for energy. U.S. crude is near $33 a barrel.

The Dow Jones industrial average sank 195 points, or 1.2 percent, to 16,710 as of 11:45 a.m. Eastern time.
The Standard & Poor’s 500 index lost 24 points, or 1.2 percent, to 1,966. The Nasdaq composite fell 75 points, or 1.6 percent, to 4,759.



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[Wanker]

Why I only invest in real estate.

 

[Guido]

Why I only invest in real estate.

What if the housing bubbles goes pop?

 

[Ozzie]

[h=1]Another Chinese billionaire has disappeared[/h]
[h=2]The founder of fashion label Metersbonwe has gone missing, the latest in a string of high-profile disappearances in China.[/h]Metersbonwe reported Thursday that founder Zhou Chengjian could not be located, and asked that its shares be suspended from trading. Local media reported that Zhou, along with the secretary of the company's board, had been taken into custody by law enforcement officials.

Hmmmmmm

https://money.cnn.com/2016/01/08/investing/china-metersbonwe-missing-billionaire/index.html

 

[Slender]

Just blame it on the Russians, works all the time and pisses off Putin.

 

[Warner]

Another Chinese billionaire has disappeared


The founder of fashion label Metersbonwe has gone missing, the latest in a string of high-profile disappearances in China.

Metersbonwe reported Thursday that founder Zhou Chengjian could not be located, and asked that its shares be suspended from trading. Local media reported that Zhou, along with the secretary of the company's board, had been taken into custody by law enforcement officials.

Hmmmmmm

https://money.cnn.com/2016/01/08/investing/china-metersbonwe-missing-billionaire/index.html

Now in the dozen.

https://www.activistpost.com/2016/0...llionaires-are-mysteriously-disappearing.html

 

[George Costanza]

This is only the beginning and don't say I never warned you. It will only get worse till the second fiscal quarter of 2017.

Wal-Mart to close 269 stores, cutting 16,000 jobs

The stores being shuttered account for a fraction of the company’s 11,000 stores worldwide and less than 1 per cent of its global revenue.


https://www.thestar.com/business/2016/01/15/wal-mart-to-close-269-stores-cutting-16000-jobs.html



​NEW YORK — Wal-Mart is closing 269 stores, more than half of them in the U.S. and another big chunk in its challenging Brazilian market.The stores being shuttered account for a fraction of the company’s 11,000 stores worldwide and less than 1 per cent of its global revenue. The push to streamline the chain will eliminate 16,000 jobs, according to Bloomberg.

More than 95 per cent of the stores set to be closed in the U.S. are within 16 kilometres of another Wal-Mart. The Bentonville, Arkansas, company said it is working to ensure that workers are placed in nearby locations.

The store closures will start at the end of the month.

There are no plans for any store closures in Canada, said Walmart Canada spokesman Alex Roberton.

Canada was singled out during the company’s last earnings report as a strong performer in the firm’s global portfolio.

Walmart Canada is one of the country’s largest employers, with 396 stores employing 95,000 associates.

The announcement comes three months after Wal-Mart Stores Inc. CEO Doug McMillon told investors that the world’s largest retailer would review its fleet of stores with the goal of becoming more nimble in the face of increased competition from all fronts, including from online rival Amazon.com.


“Actively managing our portfolio of assets is essential to maintaining a healthy business,” McMillon said in a statement. “Closing stores is never an easy decision. But it is necessary to keep the company strong and positioned for the future.”

Wal-Mart operates 4,500 in the U.S. Its global workforce is 2.2 million, 1.4 million in the U.S. alone.

Wal-Mart has warned that its earnings for the fiscal year starting next month will be down as much as 12 per cent as it invests further in online operations and pours money into improving customers’ experience.

Of the closures announced Friday, 154 locations will be in the U.S., including the company’s 102 smallest-format stores called Wal-Mart Express, which were opened as a test in 2011.

Wal-Mart Express marked the retailer’s first entry into the convenience store arena. The stores are about 12,000 square feet and sell essentials like toothpaste. But the concept never caught on as the stores served the same purpose as Wal-Mart’s larger Neighborhood Markets: fill-in trips and prescription pickups.

Also covered in the closures are 23 Neighborhood Markets, 12 supercentres, seven stores in Puerto Rico, six discount stores and four Sam’s Clubs.

Wal-Mart will now focus in the U.S. on supercentres, Neighborhood Markets, the e-commerce business and pickup services for shoppers.

The retailer is closing 60 loss-making locations in Brazil, which account for 5 per cent of sales in that market. Wal-Mart, which operated 558 stores in Brazil before the closures, has struggled as the economy there has soured. Its Every Day Low price strategy has also not been able to break against heavy promotions from key rivals.

The remaining 55 stores are spread elsewhere in Latin America.

Wal-Mart said that it’s still sticking to its plan announced last year to open 50 to 60 supercentres, 85 to 95 Neighborhood Markets and 7 to 10 Sam’s Clubs in the U.S. during the fiscal year that begins Feb. 1. Outside the U.S., Wal-Mart plans to open 200 to 240 stores.

The financial impact of the closures is expected to be 20 cents to 22 cents per diluted earnings per share from continuing operations with about 19 cents to 20 cents expected to affect the current fourth quarter. The company is expected to release fourth quarter and full year results on Feb. 18.