11:42 GMT +315 November 2019
Listen Live
    A zipper on the side of One Times Square announces a stock selloff on Wall Street in New York

    Stock Market Crash: We Are Now All Fighting for Survival – US Investor

    © AP Photo / Kathy Willens
    Business
    Get short URL
    0 114
    Subscribe

    US investor Dennis Gartman views the crash as a logical consequence of the ongoing financial downturn and argues that enterprises will now have to fight for their survival.

    Weak indicators of China’s manufacturing activities lead to a massive drop in shares on Friday, followed by another big fall on Monday that triggered a mass sell-off all over the world.

    “Finally, we should all be in ‘survival mode’ today; there is no reason to take action of any sort other than to raise liquidity where  necessary in order to survive the present chaotic situation,” Gartmann said.

    “Survival is all that matters,” he added.

    On Tuesday, European stock markets rebounded at the start of trading, despite another night of a significant drop in Chinese shares. However, Swiss investor Marc Faber does not believe that the situation is going to improve in the long run.

    US investment management company Bridgewater Capital also wrote that the markets are now at the end of a long debt cycle, which usually ends with a crash.

    At the same time, the Fed tried to calm things down. US central bank representative Dennis Lockart said that the US will start with an increase in interest rates later this year and that there will be a gradual normalization of monetary policy.

    As for now, the interest rates will tend to remain low for a certain period of time. How the economy would develop further is difficult to predict taking into account the strong dollar and low oil prices.

    "Currently, developments such as the appreciation of the dollar, the devaluation of the Chinese currency, and the further decline of oil prices are complicating factors in predicting the pace of growth," Lockhart stated.

    Related:

    China Stock Market Drop Drives Down Asian, European Shares
    US Stock Market Sell-Off: Dow Closes Down 531 Points
    Tags:
    crash, stock market, China, Europe, United States
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik