So here we are again , world equity market seen one of the worst week of this year , American stock market indice Dowjones Industrial cracked 6% beautifully oil slumped nearly 8% , and so call super power of world chinese stock market index Shanghai composite crasked 12% in single week , Again many people advising to buy in this crash well it may be true and you may get 10-15% return from here but risk reward ratio even from here does’nt look good , it just started i will not be surprised if market fall 25-30% from here so dowjones may slump upto 11000-12000 level , and super power china may crack more 30-40% from here too so 3000 level in shanghai not ruled out .
Above levels are not just magical figures , reason behind these figures are euphoria among all world market which we seen in 2014-2015 which gave unexpected returns of 60-100% within an year specially china which gave exuberance results in last one year and major investors in china are domestic traders , more than 20 million a/c opened last year , China devalued its currency and it may lead to world currency war and many other countries may follow
oil is getting worse and worse it slipped below 40$ and china slowing down , If fed increase interest rate then markets may turn worse from here .
World equity market update : When dowjones were 18000 we gave you warning sign and you already witnessed 1300 points from there , Its just the begining
If you feel i am over reacting due to last week fall , then you i just can say its just an article not an advice , an article with proper facts , Not advising you to trade or invest in market , just take a caution note
Happy weekend