Tag Archives: Exchange-traded fund

2016 Stock Market Crash – The Downside & Underestimated Issues, Overlooked Effects – Bears, Hedges, and Margin Calls

There are a few overlooked issues regarding this stock market: By George Mentz, JD MBA CWM

  1. Many of China and India’s largest companies are listed on the US exchanges such as the NASDAQ and NYSE. These stocks have gone done greatly and this will continue to effect: The Exchange, the ETFs, The Mutual Funds and other Index related funds.
  2. Margin calls will begin on many over leveraged BULLISH investors creating flash selling.
  3. Stop Orders will also create flash downside in selling even if the market ends up on a day with a quick downfall earlier that day.
  4. Oil and Gas prices should improve disposable income, but states such as California and New York gouge their citizens with taxes where gas is still 3 dollars a gallon. People from many states are only paying $1.75 per gallon or lower.  Thus, artificial government gouging is preventing any economic upside from low fuel costs.
  5. Regulation and government intervention are crushing some expansive internet business. Billions of dollars of market cap have been lost due to over regulation of e-learning companies such as Apollo/University of Phoenix and many other large online schools.
  6. Overseas confidence in US markets may be weakened due to politics, interest rates and debt issues. If investors from other nations move their money to Brazil, Russia, China and India looking for upside, then North American Stocks could suffer.
  7. People like Soros and others who start blowing the whistle on getting out of the market and being bearish will have a profound effect on investor confidence.
  8. Bear Leverage is much broader with the use of: PUTS, SHORTS, and 3X Bear Funds/ETFs.

Dr. jur. George Mentz is a world recognized self-help and wealth management commentator who has several professional development education companies which have trained thousands of professionals in over 40 countries. Prof. Mentz, an international attorney, founder of the Global Academy of Finance and Management ® www.gafm.com , has been a keynote speaker globally in the USA, China, Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz has consulted with governments, world leaders and Fortune 500 companies. Mentz has published ranked bestsellers in the following categories: Money and Monetary Policy, Management Science, Mysticism, Religion, Psychology, and in Spirituality. Dr. Mentz can be contacted for speaking engagements at www.gmentz.com or http://www.linkedin.com/in/georgementz Mentz has been a writer and author for: National Underwriter, eFinancialCareers, ThinkAdvisor, AdvisorFYI, and has been seen in the China, US, and European News.

*No tax investment or legal advice provided herein. Please consult with a licensed professional in your jurisdiction before making any important financial or legal decision. Mentz is a licensed counselor of law USA. www.gmentz.com