The stock exchange in Shanghai has attributed a recent tumble (9%), which was interesting, the next trading session in New York repeated the action. Why? Since both markets are highly connected. Economic growth in China is the heartbeat of the world's current economic growth. China is growing so fast that the rest of the world struggling to keep pace. So if China's growth looks a stumbling the rest of the world - including America is increasing. What will be interesting is toto see how China reacts to the drop in New York. When America, China is the largest market for anything that might slow the U.S. economy, China will put fear and terror vice versa.
What led to this situation. If one billion people go within a decade of being "farmers" (in terms of wealth not intelligence) to modern consumers, it will have a massive impact on the rest of the world. Factor in the fact that India, as well as trying to expand quickly, and (thanks to the new IT centerWorld) and you have (a huge burden on the resources of the world, and thus the commodity boom in Australia and other nations and the increasing prices for almost everything -), especially oil. What is surprising is that runaway inflation is not yet broken out, but it will come.
These limitations have led to growth can not last forever. Further to understand the stock market, despite the insurance broker that markets can be predicted, the history of the stock market has shown hugeUnpredictability. Despite the fact that computer programs is far from the markets and the decisions of the fact that global equity markets are one thing, run controlled "human emotion". For this reason, we often see slow long-term growth and explosive drops. Sell Factors such as "Stop Loss" (where it shares if the price drops to a certain point in order to try and achieve any gains to) do the stock markets in the past had massive drops in the space of a day or one weeks.
600 billion U.S. dollars werebefore the U.S. stock market and put New York is where the rest of the world follows. Australian stock market also opened to a drop now and the dominoes will continue around the world. The real question is, China will rebound, or will the "FEAR" look set to fall more and the world sink into recession or even depression.
When this happens, or your neighbors will lose their jobs. What will you do? Have you learned to have financial freedom?
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