I just sent out an email to two big shots in the financial world asking them "what does today’s plummeting stock market all mean?"
Equity Trader-Managing Director says:
Was driven by China price action overnight and Greenspan speech Sunday. What it means is if China gets rocked again overnight, it spills into our market. This is all good for real estate in NYC. Guys are long cash and when they look at their personal accounts at the end of the month and realize how smoked they got, they will come to the realization that you want to own real estate. You are going to be busy bro! Plus treasuries rates went down a lot today with the 10 yr at 4.5%, and durable good orders fell almost 8%! So what this all means is growth will probably be sluggish but the stage seems set for a gradual acceleration toward normalcy if the consumer keeps spending given they their spending accounts for 2/3 of GDP.
tomorrow am will be interesting….
Head Of Major Investment Fund:
Means the Fed probably reduces rates at the next meeting. Their intention was to break the housing market and slow things down. Mission accomplished. Risk markets have caught a cold.
Treasury market rallied…Goldman down 8%+.
Volatility baby. Woo hoo.
If these guys are correct, I’m going to be even more busy than I have been since January. Hard to believe, but bring it!