Monday, January 4, 2016

Can You Hear Me Now? MONEY DAILY Predictions Prove Prescient As Stocks Drop on First Trading Day of 2016

As 2015 drew to a close, Money Daily put forward a number of predictions for what 2016 would bring as pertaining to economies and financial markets.

While one day's trading cannot be considered anything more than market "noise," the historic sell-off of January 4 - the first trading day of the new year - proved to be the worst performance to start a year since 2008, and one of the top ten worst starts to a year in market history.

While stocks were down large in the US, they were worse in Asia and Europe. The Shanghai Composite was shaved by 6.9%, Japan's Nikkei tumbled nearly 600 points, a loss of 3.06%.

Germany's DAX was the hardest hit of Europe's majors, losing 4.28%. England's FTSE 100 fell 2.39; France's CAC-40 was down 2.47%.

In the US, most of the carnage was done by midday. Stocks drifted into the closing hour, and were boosted substantially off their lows by a face-ripping, short-covering rally in the last half hour of trading.

It was an unnerving beginning to a year which promises much in the way of surprises with limited upside for stocks, which have been and continue to be wildly overvalued.

Some of the bigger names were high on the list of losers. Netflix (NFLX) fell 3.86%; Alphabet (Google, GOOG) dropped 2.25%; Amazon was the biggest of the tech wrecks, dropping 38.90 points, a 5.76% loss.

WTI crude oil first rose, but came back to earth and was down for the day, finishing around 36.80 on the day.

S&P 500: 2,012.66, -31.28 (1.53%)
Dow: 17,148.94, -276.09 (1.58%)
NASDAQ: 4,903.09, -104.32 (2.08%)

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