CNBC reports that markets are "very oversold," with a lot of "forced selling" going on, says a Fidelity analyst, who compared the recent volatility to extreme downturns in the past.
"We're certainly very oversold," said Jurrien Timmer, director of global macro at Fidelity Investments.
"We're at the levels of '08, of '87 crash, 1970, even 1929, 1930," he said, referring to the 2008 financial crisis, Black Monday in 1987, and the 1929 Great Depression. "So you can count almost on one hand the times that we've been this oversold."
As the coronavirus pandemic spread rapidly through the U.S., Europe and elsewhere, investors have fled markets. Even assets traditionally considered safe havens like gold have not been spared.
Efforts to contain the outbreak have severely impacted companies, as travel comes to a near standstill, consumers stop activities, and businesses shut their doors. The shutdowns have also sparked predictions of massive job losses.
Many major investors are selling every asset class - from stocks to bonds to gold - in order to raise cash.
"It's the fastest, sharpest decline we've ever seen. It's been contagious across all asset classes - bonds, credit, commodities, you name it," Timmer told CNBC.
"Clearly there is a lot of forced selling going on amongst the leveraged set, as I call them ... A lot of positions are being unwound," Timmer added. Essentially, traders need to raise cash to pay for the over-exposed calls that have generated losses.
© 2000-2025. Sva prava zaštićena.
Sajt je vlasništvo kompanije Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
Svi podaci koji se nalaze na sajtu ne predstavljaju osnovu za donošenje investicionih odluka, već su informativnog karaktera.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Izvršenje trgovinskih operacija sa finansijskim instrumentima upotrebom marginalne trgovine pruža velike mogućnosti i omogućava investitorima ostvarivanje visokih prihoda. Međutim, takav vid trgovine povezan je sa potencijalno visokim nivoom rizika od gubitka sredstava. Проведение торговых операций на финанcовых рынках c маржинальными финанcовыми инcтрументами открывает широкие возможноcти, и позволяет инвеcторам, готовым пойти на риcк, получать выcокую прибыль, но при этом неcет в cебе потенциально выcокий уровень риcка получения убытков. Iz tog razloga je pre započinjanja trgovine potrebno odlučiti o izboru odgovarajuće investicione strategije, uzimajući u obzir raspoložive resurse.
Upotreba informacija: U slučaju potpunog ili delimičnog preuzimanja i daljeg korišćenja materijala koji se nalazi na sajtu, potrebno je navesti link odgovarajuće stranice na sajtu kompanije TeleTrade-a kao izvora informacija. Upotreba materijala na internetu mora biti praćena hiper linkom do web stranice teletrade.org. Automatski uvoz materijala i informacija sa stranice je zabranjen.
Ako imate bilo kakvih pitanja, obratite nam se pr@teletrade.global.