Children's money is still money

The China Securities Regulatory Commission has asked 36 schools in one of the country's richest provinces to teach upper primary school students "how to manage money and trade stocks", according to the Southern Metropolis Daily newspaper. This will involve about 10,000 students in a pilot programme, beginning next month. If successful, the new curriculum will expand to the rest of the province, the paper says.

Im all for this kind of thing but I can tell this will be abused.  The smart chinese say kids should be taught how to behave before how to place market orders.  Kids are going to make their families rich and poor, without them knowing.  Crazy.

Market is going down

I know we are probably looking at about a 50% recession selloff and not a 10% correction because everyone is talking about stocks.  The media is merose on a big down day but giddy on a big up day.  That means impulse has taken over.  There is no faith.

Also, a large amount of money has been withdrawn from equity funds, an amount not seen since 2007. 

What Cameron is going through

When a firm acquires another entity, there usually is a predictable short-term effect on the stock price of both companies. In general, the acquiring company's stock will fall while the target company's stock will rise.

The reason the target company's stock usually goes up is that the acquiring company typically has to pay a premium for the acquisition: unless the acquiring company offers more per share than the current price of the target company's stock, there is little incentive for the current owners of the target to sell their shares to the takeover company.

The acquiring company's stock usually goes down for a number of reasons. First, as we mentioned above, the acquiring company must pay more than the target company currently is worth to make the deal go through. Beyond that, there are often a number of uncertainties involved with acquisitions. Here are some of the problems the takeover company could face during an acquisition:

A turbulent integration process: problems associated with integrating different workplace cultures
Lost productivity because of management power struggles
Additional debt or expenses that must be incurred to make the purchase
Accounting issues that weaken the takeover company's financial position, including restructuring charges and goodwill
We should emphasize that what we've discussed here does not touch on the long-term value of the acquiring company's stock. If an acquisition goes smoothly, it will obviously be good for the acquiring company in the long run.

For me, I cant control what happens but it would be nice if schlumberger stock is really high when my cameron stock converts over.  I think the 1 for .716 plus $14.44 is set in stone.  I would wait to sell slb when oil peaks again. 

Well said

"The price of entering the market has just gotten cheaper, and the world isn’t that different from what it was a week ago," Kisgen, now Boston College Carroll School of Management associate professor of finance, said.

Several months from now I'll say "the price of entering the market has gotten REALLY CHEAP, and the world  isn’t that different from what it was a year ago."

Everything is going down but the snowball is just getting started.

Market concerns

Three factors continue to hover over the markets:

1. Concerns that China's economy is slowing faster than its government has said.

2. Uncertainty over whether the U.S. Federal Reserve will raise its benchmark interest rate in September.

3. The effect of cheap oil, which has dropped to its lowest point in over 6 years.

Through all of this, it's worth remembering that U.S. stock indexes had hit record highs earlier this year, after logging double-digit gains in each of the last three years.

Arguably, the U.S. stock market was heating up, and weak company earnings weren't lining up with high stock prices.

The best explanation is over heating.  U cant blame china, since we are all at blame since we are all connected in the same global economy, each having our own influences.  The fed reserve and cheaper oil make an economy or market  vulnerable but they are not to blame either.  People have bought all they could buy and some need to sell to get money back, or overheated, is the real reason for this global selloff.

All eyes are on sp500

The S&P Futures are re-testing that 2,060 level, which is 20 points below the 200-day moving average and, more importantly, 35 points below the 50 dma, which means, if we finish down here, we can drag the 50 dma almost a full point lower and a few days like that can bend the line down and then we're heading into our 3rd major death cross sometime around the end of September.

Meanwhile, china is at their 3500 mark which the govnmnt said they will buy at to gaurantee a floor.  Oh lord.

Housing market

Existing home sales are the highest they have been since 2007, the year the last recession probably started.

Makes me feel better about not getting a house yet.

Next market crash = Doomsday

Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.

The article had a picture of a mushroom cloud from an atomic bomb.  Funny

Good article though.  Coverered all major signs that the selloff already began.  Our world is probably 15% through the crash already.  I have a feeling the crash will be blamed on oil since nothing else happening is easy for avg people to think or talk about.  Oil crisis?  Energy crisis?  Quien sabe.

Really?

"There's every reason to believe this bull market continues," said Troy Gayeski, senior portfolio manager at SkyBridge Capital.

Really?

We are at all time highs, been going sideways for awhile, the rest of the world has been turning down or are at obviously overheated levels, it would be normal for the business cycle to slow down right now, many major companies are reporting lower earnings and worse projections........but troy gayeski believes the expansion cant end??? 

He is only saying that to keep getting business and delay losing his job.  If the market tanks, his income might tank as well.

Map of capitalization

Cool map merril lynch boa released.

Japan is bigger than the rest of asia combined.  China is small and russia is teeny tiny.

Britain is the largest in europe.

Usa is a hair bigger than the rest of the world combined.

Dow death cross

A rare “death cross” appeared Tuesday in the chart of the Dow Jones Industrial Average, suggesting the stock market may have already begun a new long-term downtrend.

A death cross is said to have occurred when the 50-day simple moving average, which many use to track the short-term trend, crosses below the 200-day moving average, which is widely used to gauge the health of the longer-term trend. For the Dow industrials, it marked the first time the 50-day moving average, currently at 17,806.97, was below the 200-day moving average, at 17,813.42, since Dec. 30, 2011, according to FactSet.

Just start selling in a panic already.  Its getting boring watching the market squeak by at its all time highs.  Obviously the public has lost almost all its excitement to buy anything.  The equity market is like a balloon tied to a chair after a birthday party.  You know its going to be on the ground soon but 3 days later its still hovering above the chair.  Eventually the market and the balloon should lose enough helium to start sinking.

Brazil

The seventh largest economy in the world in 2014, according to the World Bank, is spiraling down, with private sector output, as Markit put it, falling at the “sharpest pace since March 2009.”

Another  "worst since 2009" statement.  Brazil, that huge country thats only known for steakhouses and beaches.  Their economy lost steam along with china.  America is hanging on pretty well, it will be the finale to officially usher in the global recession.

Small panics

Im seeing isolated, brief panic selling in major companies who announce bad forecasts.  Today disney was down 6-9%.  Seems like recessionitis is out there and slowly spreading.

Bloodbath in Athens

The pictures of european politicians show smiling and happiness.  Descriptions of the stock sell-off in athens are using the word bloodbath. 

Its the first day their market opened.  The financial stocks are down about 25%. Not a buying opportunity.  It will bounce around for awhile, so no big long term investment gains but good for day trading.  Greece is so small compared to the rest of europe but its done everything but create a no-holds-barred streetfight between all the overweight people in suits.  People are trying to compare usa influenced puerto rico to europe's greece but puerto rico is way better.  P.R. has 5 times the gdp as greece and a quarter of the debt.  Plus I would bet my life that puerto rico restructuring its debt wont consume the president, the fed reserve and other high officials in endless conferences and speeches.  Can greece join the usa already?