Stock market in China is open and tanking for the cellar. Look out below.

[Grasswire2]

[link:http://

Link to tweet

?s=20|

[OAITW r.2.0]

1. Glad I'm not in the stock market, but money market funds?

They will melt right behind the stocks.

[brokephibroke]

5. Doubtful

But a balanced portfolio of stocks, foreign stocks, bonds and cash is still the way to go...

[OAITW r.2.0]

6. If you can read the tea leaves....I guess. nt

[Blue_true]

8. Depends. If your funds are in high quality stuff, no.

If it is in risky stuff, likely yes.

What people don't understand is money market funds are invested in something, usually bonds, with the fund company keeping anything over the percentage that it promised people giving money to the fund. High quality bonds that are issued by strong balance sheet companies will pay out to money market funds. Low quality bonds issued by weak balance sheet companies could have difficulty paying.

[onethatcares]

15. I don't understand that.

at all. I'm a semi retired carpenter that has a small IRA, a small saving account or two along with a money market account.

I am not fluent in money. Could you explain please?

Thanks in advance,

[ooky]

25. The risk for your small IRA depends on how your investments within the IRA

are allocated. It may very well be at risk if it is not properly balanced, i.e. too heavy in stocks. You should check with whoever you have your IRA with to be sure you are balanced correctly and also invested within your own tolerance for risk. Some people who are concerned about the stock market falling are moving their IRA/401k investments into more stable investments such as stable asset funds and money market funds. They don't provide much return on investment but quality funds should survive a stock market crash. My Vanguard stable asset fund didn't lose any value during the last big market crash in 2008.

Bottom line is if you are not sure about your IRA you should definitely check on it.

Your savings and money market accounts (I assume are normal bank accounts) should be okay.

[IronLionZion]

23. Money market is more like a savings account

you're earning a little bit of interest since rates are low but you won't lose money.

[Leghorn21]

2. WSJ reporter Jonathan Chang is in Beijing - has been posting about possible downturns/crises

The avian influenza is likely to add to the economic damage
rather than pose a major immediate health risk. While avian
influenza can be fatal in humans, with a mortality rate of 60%,
according to the WHO, it doesn’t spread easily to humans.

In addition to coronavirus, China has been grappling with African
swine fever, which has decimated the country’s pig population. Pork
is China’s main source of protein, and swine fever pushed consumer
inflation last year to an eight-year high.

Link to tweet

Apple, which relies on China for about a fifth of total sales, is
shutting it all down in China—less than a week after Tim Cook told
investors the company was closing just one store and reducing
hours at others.

Link to tweet

The coronavirus outbreak is isolating China from the rest of the
world. Rarely has such an integral part of the global economy
faced such an abrupt and open-ended freeze out. The consequences
are beginning to be felt.

Link to tweet

Hard times

[OAITW r.2.0]

10. Anyone who really has paid attention to the Chinese labor market know this.

We have never seen a disruption to the labor force that makes stuff for our consumer markets. It is just starting. Typically, it takes Chinese factories 3-4 weeks to recovery from CNY. The more returnees, the better. But it is always a crap shoot.

Coronavirus will retard manufacturing by 8 weeks, possibly 16.....unless it/s worse than I think. That's a lot of stuff that's demanded, but not made.

[Leghorn21]

12. Thanks, O - I know, like, zero about any markets anywhere, but yeah, we depend on sooooo many

goods from China, how could even a small disruption not affect us? — And even with “just” all the airlines canceling trips to and from there, surely that’s a major upheaval - and the businesses who primarily serve tourists? Nope - they will not be thriving anytime soon

I sure am sorry, this is a very bad deal

[OAITW r.2.0]

13. No one benefits....except maybe Putin.

I do not trust this man.

[Leghorn21]

16. No reason to, O, now or ever...meanwhile, from NPR producer Amy Cheung in Beijing this morning:

Beijing has never looked emptier to me. Pictured: subway line 10 on a Monday morning.

Link to tweet

[OAITW r.2.0]

18. wow, what is next? nt

[wnylib]

19. How does Putin benefit from this?

[brokephibroke]

3. Dow futures show a bit of a recovery tomorrow

And China has stabilized for now.

[Wounded Bear]

4. Shit like this has a way of traveling around the globe...

Europe next, then us?

[Leghorn21]

7. China's private sector business capital, Wenzhou, on lockdown now:

...

Authorities in Wenzhou, the east China city with the highest number of coronavirus patients outside the epicentre in Hubei province, have imposed strict restrictions on people’s movements, allowing only one resident per household to go out every two days to buy necessities.

The restriction went into effect at midnight on Sunday and will remain in place through Saturday, the municipal government said.

The only exemptions to the rule are people who are ill and require hospital treatment, and those working to fight the outbreak or in other essential public services.

Wenzhou, which is about 900km (560 miles) southeast of the Hubei capital Wuhan, is a major business centre and hub for China’s private sector. It is the second city to impose tight restrictions on residents’ movements after Huanggang, which has the highest number of confirmed cases in Hubei – 1,002 – after Wuhan, which has more than 4,100...

https://www.scmp.com/news/china/society/article/3048610/chinas-private-sector-business-capital-lockdown-coronavirus

[onenote]

9. Dow futures currently UP 176 points.

[Hekate]

11. Kick to share later. Hubby's eyes are glued to the SB

[TeamPooka]

14. Reuters: SHANGHAI COMPOSITE INDEX .SSEC TO OPEN DOWN 8.7 PCT AT 2,716.70 POINTS

Reuters: SHANGHAI COMPOSITE INDEX .SSEC TO OPEN DOWN 8.7 PCT AT 2,716.70 POINTS

[PoindexterOglethorpe]

17. Buying opportunity.

Don't ever forget that the market periodically makes new highs. It never makes new lows.

[progree]

20. Absolutely n/t

[PatrickforO]

21. The fecal material might be about to hit the fan. n/t

[IronLionZion]

22. Chinese markets have been closed for the past week or so for Lunar New Year

So their stock sell off was delayed a bit.

Americans companies buying parts from China will be impacted by work stoppages. And everything is made in China these days, so everyone will feel some impact.

The Chinese government may be under pressure to lift tariffs on imported food.

https://www.cnn.com/2020/02/02/investing/china-markets-coronavirus/index.html

[pbmus]

24. These downturns are good for the short sellers...and a few market capitalists

Don’t sell due to a virus that hasn’t killed even 1% of what our own flu season kills every year... there are companies that are working on a vaccine shot , invest in those companies and reap the harvest in 6-12 months.

remember to buy low, sell higher....

[dewsgirl]

26. I have been following the Coronavirus developments very closely,

I am following accounts I never imagined I would follow before, lots of day traders, cryptocurrency accounts, they are very alarmed.

[nitpicker]

27. Daily Briefing: Returning Shanghai clocks virus hit, but other markets calm

https://uk.reuters.com/article/uk-europe-view-monday/daily-briefing-returning-shanghai-clocks-virus-hit-but-other-markets-calm-idUKKBN1ZX0XO

February 3, 2020 / 3:55 AM / Updated an hour ago

Daily Briefing: Returning Shanghai clocks virus hit, but other markets calm

Mike Dolan

LONDON (Reuters) - The return of Shanghai markets from their week-long new year holiday has seen a cumulative 7.7% drop in its benchmark equity index to reflect the past week of drama surrounding the still-spreading coronavirus, offset in part by an interest rate cut and $176 billion liquidity injection by by the People’s Bank of China over the weekend.

But even as the death toll and the infection numbers continue to rise, non-China markets were far calmer – even after Wall St’s steep drop on Friday. What’s clear now is that an outsize economic hit in China is now likely for the first quarter, with full-year growth rates for the world’s second-largest economy being revised down to between 5.5% and 5.7%.
(snip)