Last week I discussed the impact Greece was having on the stock market, but I failed to mention another contributing factor. The sliding of the Chinese stock market. China has one of the worlds largest economies so when it begins to slide, the world takes notice. By comparison Greece ranks 45th in economy size and China ranks 2nd. As China's economy has rapidly expanded due to government spending, the average wage for a worker has gone up. We know China is a major producer of goods, so when the price of production goes up, companies begin to move their operation to cheaper countries. If you haven't noticed, as of late, more and more products have been made in Vietnam and other countries. Check your tags of recently purchased products. With Greece and China both experiencing monetary issues at the same time, it should be understood as to why the market is very volatile. In only the last week, there have been swings in the U.S. markets of 200-300 points negative and positive so if you time it properly there is money to be made.
*Disclaimer: Trying to time the market is usually a bad idea, it is too unpredictable unless you have inside info... But that's illegal so I advise against it.
Overall it is very exciting times in the financial world so we must stay tuned to what will happen in the next weeks!
*Disclaimer: Trying to time the market is usually a bad idea, it is too unpredictable unless you have inside info... But that's illegal so I advise against it.
Overall it is very exciting times in the financial world so we must stay tuned to what will happen in the next weeks!