{"id":17854,"date":"2018-10-14T18:59:11","date_gmt":"2018-10-14T22:59:11","guid":{"rendered":"https:\/\/www.pgmcapital.com\/?p=17854"},"modified":"2018-10-14T18:59:11","modified_gmt":"2018-10-14T22:59:11","slug":"dow-tumbles-more-than-1300-points-in-the-week-of-october-8-2018","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/dow-tumbles-more-than-1300-points-in-the-week-of-october-8-2018\/","title":{"rendered":"DOW Tumbles more than 1300 points in the Week of October 8 2018"},"content":{"rendered":"<p>Dear PGM Capital Blog readers,<\/p>\n<p>Stocks fell sharply on Wednesday, October 10 and Thursday October 11, in a second straight scary day on Wall Street as investors dumped equities around the globe because of fears of rapidly rising interest rates, a possible global economic slowdown and overly ambitious tech valuations.<\/p>\n<h3>WEDNESDAY, OCTOBER 10, 2018:<\/h3>\n<p>On Wednesday, October 10, U.S. stocks dropped sharply as a massive selloff in the biggest tech stocks drove markets to lows not seen since February of this year.<\/p>\n<p><iframe loading=\"lazy\" id=\"cbsNewsVideo\" src=\"https:\/\/www.cbsnews.com\/video\/dow-tumbles-over-800-points-over-interest-rate-worries\/\" width=\"620\" height=\"349\" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p>The Dow plunged 831 points, losing 3.15 percent of its value. It was the second-biggest drop of the year for the Dow, which on February 5 lost\u00a0<span class=\"link\">over 1,100 points<\/span>\u00a0in a single trading session.<\/p>\n<p>Below YTD chart shows the drops of the DOW in February and October of this year.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/lh3.googleusercontent.com\/KREoKnBr9hSwmYyt7rmlUQMbmPghSQtDMKZ8baE39OSFnnOTgKIyn2sw8o7tbQIhAl9ettdbxy7CE5LnQXjkKWORE2KuVLx65OLRwncm6JNPUv2Tzdd2YZxEGN4bFwAVyipMBFqu0zKsErc9neFyIW0HtkGwBcZeU3CCcn2aeeN5awg3BTZc_NvGN2VLuuiZHQUhhMWJAgccGwPzryEZYDlNQ3Xx6EDRgc2eI5Vw0bBVTN-8DShsSsTMq-uoz4wXdADnFAoG6v9qMpbBy5FS_cw91EWGcVXPGGho_eOaIQeq723PZtZXC-9ImDXIzD7RQvV5gred8wdpmvrj5_tfcjc48S7Nguu_OzNO4u7bRM2Uzv57881dXYTUqKLsdLNnVz3Z4jNZjjqEpCMZtYrif_fMzpNayafS1vDCX1hHUDZE6CbdeB44XyFhKQws1tNhVbd5cr9yAJw52Vm20Nem0nCxYesNtMJpbfGYA8zXWpIDijEgylPuBh9ql58a-K0a8XbIOnszJIlRSfPVFHu2RiY-K-Wu0LJLDwpPb6FbDOHwIn5IGvTrSi029lALzPCtGOe_qZfjl76jK0K_LgpXnXG-82B_FMgRV_yQ5VMI9UgWWWd7LHWEeYwAKVFNR3v6=w1647-h705-no\" alt=\"\" width=\"635\" height=\"272\" \/><\/p>\n<p>The S&amp;P 500 lost 3.3 percent, while the tech-heavy Nasdaq composite fell just over 4 percent, its biggest loss in more than two years.<\/p>\n<h3>THURSDAY, OCTOBER 11 2018:<\/h3>\n<p>Wall Street had another rough day on Thursday, October 11, with the tech-heavy Nasdaq index dipping approx. 10 percent, for it come into correction territory as can be seen from below 5-day chart and the Dow Jones closing 548 points down after another day of market convulsions.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/lh3.googleusercontent.com\/yqo-66Nnq5cnINNk5cSpxUAmRTGyVXIP_02JEwFXt6tu0TpCUc6DaGJP44T_384awzerfZIE6GCHEYhGYK3sTlRUgmoJgpeDl9H_wm-mh9Zu6nKEejzn3BybVYsxy4sKFAKIz-tR1RmUkLLX0xMmZuG-xWFG1Er9Q2kvECjwPqYatMVWfx8ScfTKyznPMeVGPk6_78EEGvKwv9f1VLwVCKcRCmJMaQCWPznnCn2PcoxPYtwVzL5GWopg7oZPw3nj2xgdPuUEpOsu5eopRH5MQHnZ6FxizQ8WSHmE-TIquhWQ4XffQh9ZBoCX4pdTmp51ymrgDYrNvj9XhrhlpF9bC6k7kJllIAUMsV-IsaLmhkuzt7NmdPa3EKCTjQlOs1QOAXLxXr2bfoTjg8XiG7X7TFI-9CpIqDcOoEx_yXnhCf-aZFB6lb4zf_Dy-CdSU1I63eSSCioNhB-w5TH5rAx7QHFCqf8nb5NodOUTzmXa5EQWey08eYOL6jsEDLpTm0ShluJ8MEimK3_0s2G_1fBu1Srs8QsMAbLIxLJf4tSwdo3ziyEBVUGJUNG1WvXnzYDz-d5o5QwS7e1qEQ62VJ2UYizjZ1tatcgoJP4KCTvvs9qIH7zrlo65nGcdIAszso5h=w1656-h704-no\" width=\"606\" height=\"258\" \/><\/p>\n<p>As investors fled the stock market for bonds and other safer assets, gold surged by 3 percent to hit its highest level since early August as can be seen from below chart.<\/p>\n<p><a href=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/10\/Screen-Shot-2018-10-14-at-3.05.17-PM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17866\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/10\/Screen-Shot-2018-10-14-at-3.05.17-PM-300x158.png\" alt=\"\" width=\"600\" height=\"316\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/10\/Screen-Shot-2018-10-14-at-3.05.17-PM-300x158.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/10\/Screen-Shot-2018-10-14-at-3.05.17-PM-768x404.png 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/10\/Screen-Shot-2018-10-14-at-3.05.17-PM-1024x539.png 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2018\/10\/Screen-Shot-2018-10-14-at-3.05.17-PM.png 1118w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><\/p>\n<h3>PGM CAPITAL\u2019s COMMENTS &amp; ANALYSIS:<\/h3>\n<p>Stock prices have been hurt lately by fast-rising interest rates. On Wednesday, the 10-year yield once again touched its highest level in more than seven years as can be seen from below chart.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/lh3.googleusercontent.com\/qOt9VtbLDzmbaEc1BnagqRVmKpbEPNIBOXi2aXxOJnjehqonIFr-ShAvremdd1XRe1OtcsIzGuyg8K8qsYCa6Y0QHg-7BagnGS-ofYMzYUKKevUSS5MiDZ9DcaWnXl_tekoK6GFnKxCggeh9CvNX2QRIqLVBV4sUqr3gVDggiL7x4-Cd0NTruCIGFWYF7HlvDj1WPuMv41Nj5bVm6pClPnG1-oFr_c4XZc33CosaMjPnpK1mU7G-GbfKrpu-8mK9eBMPTtXZbhywp4J1P9dCwobBQavTjIJ66p0SipprH_44fAjJcN9f5_C3X2HyHKp1fnL50H4_JY4zM-xoRfsyF5SXbYFdtkElG1WBSpOhjQreUZY-v7QXP3Jtoob72anj5_u9P4rurdrpg5BKzytReRmY7L9DhS7dRrn0-KgCYI0VouJdOsh736TtBGY2flL1rWZzIQgf5bFQsOoqNXX5WRBVClRvsgvLRf92M0APolkMfsmxsHnlH4ZrWSSDfLN0S05wa1ezpXyPMHq_6y5zyadc_tabrXUuK8JyhLYB-sNvHc9-eT46gGOOfGq7uN8A4dftgVRdMYWEt0KJM1_dPi_JB-ER4hmok-QzQDFiN2Dw8VCNO5g4dV4kgF-u69h0=w1645-h700-no\" width=\"608\" height=\"258\" \/><\/p>\n<p>Interest rates began spurting higher after several\u00a0<span class=\"link\">encouraging reports<\/span>\u00a0on the USA economy. Higher rates can slow economic growth, erode corporate profits and make investors less willing to pay high prices for stocks.<\/p>\n<p>Higher interest rates mean greater expense for local and state governments and corporations, something that hammers profits. Rather than keeping their money in companies that are facing shrinking margins.<\/p>\n<p>Tech stocks, which have been among the biggest winners in the current bull markets, suffered the steepest losses Wednesday. Apple and Amazon both had their worst day in two and a half years.<\/p>\n<p>This year, thus far, doesn\u2019t look like it\u2019s going to be a barn-burner. Year-to-date, the dow is up a meager 3.55%, the S&amp;P 500 is up 4.19%, and the Nasdaq up 7.5%. Historically, October tends to be the stock market\u2019s cruelest month, so there\u2019s no telling how the markets will perform for the rest of the year.<\/p>\n<p>Below chart gives shows the rout of the DOW Jones, in the week of October 8.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/lh3.googleusercontent.com\/gxoyevEc5kqrsXrWOWQY7jmK5DvfBCF-0x2YNLUvzEN9JXVTX2Bde-h5ek3-egFEYHXhMPCRL3vCUntmFr98RoYi44ofikHhouddysQDIABhK4Qz0jDSqgcLnHinDtJ9fQGfHLmatOLCpKg9E2w1P5Kq5Ki6uedCyntURtcS1fd-Yaqc6AfmrqBLv6x3Vfw_0UvBgk_DWLQCTjhE3dUBojasNcBYmkeAOd7DxGFSR1enATFLN9lUBLKvniw-xYjQwss3QBYAJFiAaiE4frNtTJbB77Suj00djGWqSWQ8PAeAAtdpCkUqyHQPOtkNswUd4VbIkWez7_1LxLfoiimKoy2qkb2rcEoqbQV8-inaH9y4nS-A9jWzCZk8_y_leq1aFXmya8R1WqyjLJTfYl4jg2M4bpJ30d1twekV9XMvRgdWKa7A2HYGC_6QEQNk7VcwJ0Om6_dKTd8jv06hKe7eVJsTEUI7WILinw7FxZe9wcYtdTccE7MuqCnjyRvSE6Fos6i9Ipmy_HtIYJ5h6p0mPB9kBuS-lDEzLKQKFRhuvE_VDqhhw-TsCarS9Xgln3iIm-2yEQSgVSsaM94kNxAdXvyhlMoo51OZpgQI4dksZgI5LrhrAEbqrOLSRFfZnALf=w1721-h773-no\" width=\"617\" height=\"277\" \/><\/p>\n<p>Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration.<\/p>\n<p>Keep in mind that share prices don\u2019t move in a straight line. A Past Performance Is Not Indicative Of Future Results and that markets can remain irrational longer than you can remain solvent.<\/p>\n<p>Yours sincerely,<\/p>\n<p><a href=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-14\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\" sizes=\"auto, (max-width: 112px) 100vw, 112px\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg 160w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric-150x150.jpg 150w\" alt=\"\" width=\"112\" height=\"112\" \/><\/a><\/p>\n<p>Eric Panneflek<\/p>","protected":false},"excerpt":{"rendered":"<p>Dear PGM Capital Blog readers, Stocks fell sharply on Wednesday, October 10 and Thursday October 11, in a second straight scary day on Wall Street as investors dumped equities around the globe because of fears of rapidly rising interest rates, a possible global economic slowdown and overly ambitious tech valuations. WEDNESDAY, OCTOBER 10, 2018: On<a href=\"https:\/\/www.pgmcapital.com\/nl\/dow-tumbles-more-than-1300-points-in-the-week-of-october-8-2018\/\">[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":17875,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-17854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=17854"}],"version-history":[{"count":23,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17854\/revisions"}],"predecessor-version":[{"id":17882,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/17854\/revisions\/17882"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/17875"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=17854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=17854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=17854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}