Posted on 10/27/2008 3:23:12 AM PDT by TigerLikesRooster
HK shares plunge 12.7 pct in biggest drop since '97
Reuters - 1 hour 6 minutes ago
* HSI falls below 12,000 points; lowest since mid-2004
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* HSI posts biggest one-day drop since 1997
* HSBC mauled by crisis fears
* Energy stocks slump amid extended pullback in crude prices
By Jun Ebias
HONG KONG, Oct 27 - Hong Kong shares plunged 12.7 percent in their biggest single-day drop since 1997 on Monday, led by blue-chip heavyweight HSBC <0005.HK>, as fears of a global recession hammered Asian financial markets.
The benchmark Hang Seng Index <.HSI> closed down 1,602.54 points at 11,015.84, its lowest level since mid-2004 and taking its losses so far this year to 60 percent. The index lost as much as 15 percent earlier, its largest one-day decline since 1987.
Europe's largest lender, HSBC <0005.HK> shed 14.77 percent to HK$75.00, its lowest level in seven years and wiping US$20 billion off its market value. The stock plunged 12.5 percent on Friday after Morgan Stanley slashed its target price to HK$75 on growing signs of trouble in emerging markets.
"There is panic selling in the market," said Kenny Tang, associate director at Tung Tai Securities. "Investors are still bracing for the bottom."
The losses came as Japan's Nikkei average fell 6.4 percent to its lowest in 26 years as the surging yen will further weaken the nation's exports, hurting the economy. Banks tumbled on concerns they would need to lift their capital. [ID:nT105401]
"Banks are chronically under capitalised, which means credit rationing process is still very much likely," said Tim Rocks, equity strategist with Macquarie Securities, Hong Kong.
(Excerpt) Read more at malaysia.news.yahoo.com ...
Ping!
It appears that we in the USA produce too little wealth with which to trade, and our leadership’s debt schemes to fund our purchases are also running out of momentum.
WOW, HSI was over 30K not so long ago. Incredible how perception changes. We are not even officially in a recession yet.
11-19-07 | 12,980 |
03-10-08 | 11,951 |
07-07-08 | 11,100 |
09-29-08 | 10,325 |
10-06-08 | 8,451 |
10-20-08 | 8,378 |
There were people here on the board who talked about a 7K Dow.
We were routinely laughed at and called all sorts of idiotic and cruel names.
The Foos on the other shoot now, eh?
Don’t bet against the market long term... you will lose... and HISTORY proves it.
LLS
When I opened that mutual fund annuity, IIRC, the market was in the 9500 range.
During the up years, it was good, as I was not needing to ‘use’ it. Now, I am ‘using’ it.
“Long term” is not always viable for those in retirement or on fixed incomes.
LLS
And it burns, burns, burns, that ring of fire, that ring of fire"
The concern is palpable.
Americans, who should be the first to know and connect the dots here, may end up being the last.
Electing this man is going to crash the US stock market for good, the reprecussions worldwide will be enormous.
And there, finally, "The World" will have it's President they have always wanted (the elites at least, particularly Europe). And worldwide recession.
Irony of ironies.
CHANGE WE CAN BELIEVE.
Credit rationing...Now, that's were the game gets real serious.
So, what do we move that to and when based on anticipation of a McCain victory bounce?
Yeah, and history also proves that if you invested in the DOW in October 1929, it was 1954 before your investment returned to parity.
How long term is your outlook ?
My first thought was that HK meant Heckler&Koch. Given the current political environment, I would expect Heckler&Koch to be doing quite well.
The investment brokers are always pushing the mantra of you must have some % of your portfolio in stocks because you will possibly be retired a long time.
If even 20% of your portfolio is in stocks, and maybe another 20% is in long term or corporate bonds liwith a so-called blue chip company like GE, you are in a world of hurt right now.
The real lesson here is that a much more active management of your portfolio is essential - forget the “buy and hold” crap they try to suck you in with.
As for me, I’m up 9% this year while many are down over 40%, simply because I didn’t “buy and hold”.
Years ago I had a private individual financial adviser and I just started reading IBD. Their advice a couple months ago was to go 100% cash and it's now recommending research so as to be ready for the next rally.
fwiw, the current overseas intraday trend us up.
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