Think this bodes for disaster for the Dow? Think this bodes disaster for the world economy? Think I'm right about the disaster hitting Japan this summer? I do.
Tokyo Stock Exchange (photo by me - use as you wish)
Bloomberg reports in Japan's Topix Heads for Lowest Close Since 1983 on US:
Japan’s Topix Index (TPX) plunged to the lowest level since 1983 and entered a bear market, after disappointing U.S. jobs and China services data added to evidence the global economy is slowing.
The Topix slid 2.1 percent to 694.22 at 12:40 p.m. in Tokyo, heading for the lowest close since Dec. 2, 1983, and dropping below levels last seen since the global financial crisis following the 2008 collapse of Lehman Brothers Holdings Inc. About 12 stocks fell for each that rose on the measure. The Nikkei 225 Stock Average (NKY) dropped 2 percent to 8,272.00.
“This is a panic selloff,” said Koichi Kurose, chief economist at Resona Bank Ltd., Japan’s fifth-largest lender by market value. “Action from policy makers is the only thing that will calm the market. The market is pricing in a deterioration in the U.S. economy through summer.”
The Topix has fallen about 21 percent since March 27 amid a deepening debt crisis in Europe and slowing growth in China. Should the gauge close at the current level, it will have entered a so-called bear market. The decline compares with a 9.5 percent drop on the Standard & Poor’s 500 Index (SPX) and a 12 percent slide for the Stoxx Europe 600. (SXXP)
Maybe there really is a reason the the SEC changed the rules for a trading shutdown in the event of a crash last Friday.
Maybe they know something that we don't?