The recent big sell off is considered a golden buying opportunity for some and a bloodbath for others.
After a long bull run, especially in the FAANG stocks, it now seems like a bearish market is in sight.
All five FAANG stocks(FB, APPL, AMAZN, NFLX, GOOGL) are now in bearish territory and this is the first time, all five stocks are dropping at the same time.
Apple´s last bear market was in 2015 and started on August 21. that year, and did not end until Aug. 9. 2016.
The price on stocks and bonds has all seen a steep fall at the same time which is very unusual. With the recent development in the prices, it looks like global stocks and bonds will end the year in the negative – a first in 25 years.
The Nasdaq Composite Index, from which all the FANG stocks are a part of, has declined 14,8% from its record close on August 29. The Dow Jones industrial Average has fallen 8,8% since its record close on October 3.
But while american stocks have had a tough start to the week, the asian market had a much more positive monday morning.
The investors in China, are generally optimistic and Shanghai Composite saw a rise of 0,3% while the CSI 300 index is in the green with an increase of 0,5%.
Oil prices, which have seen a steep decline lately, was able to make some gains on Monday. Brent crude has seen an increase of 1,9% to $59,89 a barrel. The oil price have been held down by a strong U.S dollar.
$3 trillion has been shed from U.S equity value since late September, a sell-off that meant a decline of 10% for S&P 500.
The G20 top meeting on Friday are having investors holding their breath, as the ongoing trade war can take a new turn once the two presidents meet.
It will be exciting to see how the meeting between president Xi Jinping and president Donald Trump and even though the asian investors are optimistic about the outcome, the threats are still present between the two leaders.