Reborn Wealth America

Chapter 113 The impact of the midterm elections

Standard & Poor's 500.

Dow Jones Index.

Nasdaq Index.

These three indexes are a barometer of the US stock market.It is also because the US stock market is the largest stock market in the world.

These three can be regarded as the three barometers of the world stock market in a sense.

Whenever the US stock market is in a bear market.They plummeted, and the red ones couldn't be red anymore.Just like the financial crisis in 2008 and 2009.

Whenever the U.S. stock market is in a bull market, they can't be green again.Just like 2010 to this year.Although there are occasional red accents.But the overall form is still more green.

The stock market in the past decade.Except for some small twists and turns in the middle.

Basically, they are rising.

It is precisely this upward trend.

Only then is it possible for Apple or Amazon to become the first super-large company with a market value of more than one trillion US dollars.

Only if the entire market is good.

Only companies with such exaggerated market value have appeared.

Abel saw that the three major US stock indexes were all greenish.

And the value of red is not low.

Standard & Poor's 500: 2885.12, -0.8%.

Dow Jones Index: 26447.05, -0.68%.

Nasdaq Index: 7788.45, -1.16%.

All three indexes are trending downwards.The decline is not big or small.

This attracted Abel's attention.

Because of the smoke of fate.He also pays attention to the US stock market occasionally.

As the largest market value, but also the most free stock market.

He is one of the best hunting grounds for guys like him who can predict the future with this plug-in.

Just the previous time.

He is concerned about the predictions are some star stocks.The so-called star stocks are those stocks with the highest gains in a day.

Or predict the worst stocks that have fallen.

Only when the overall market is very stable.

Regardless of the star stocks with the highest gains.It is still those stocks that are more unlucky and have fallen the most.

Neither the magnitude of the increase nor the magnitude of the decrease are too exaggerated.

It's a few percent to the death.

Most of the plates of this stock are relatively small.Even if Abel invested money, the profit was small.

Companies with larger plates, such as Apple, Google, Amazon, and Microsoft, are not stable.

The size of the stock plate has a great influence on speculative stocks.

Take Apple, for example, if its stock rises or falls 1%, it is a float of billions to tens of billions.

But if you switch to a company with a market value of only a few hundred million dollars.This 1% margin is only a few million to tens of millions of dollars.

Such a small amount of float.It makes sense for some retail investors.But for Abel, a crocodile with more than two billion cash flows in his hands.

This kind of company is just small shrimps that tasteless.

Look at the three major indexes in red.

Abel curiously used the mouse to click on the U.S. line of the three major indexes in the past few days.

In Southeast Asia and Asia, this kind of circuit diagram is called a candlestick diagram.In the beginning, the Japanese rice merchants made it to symbolize the daily fluctuation of rice prices.

Later, it gradually developed into a volatility chart of the stock market there.With the development of the Japanese economy and the stock market in the middle of the 20th century, K-line charts have become popular in Southeast Asia, affecting the entire Asia, and becoming popular all over the world.

However, Lao Mei is very stubborn and still uses the "American line", also known as the zigzag line.

The two are actually one thing.

In fact, in comparison, the candlestick chart is actually more intuitive than the U.S. line, and can better reflect the contrast between the bulls and the bears.

But the old beauty can't help being stubborn.

Abel had not studied the stock market before.Half of the existing stock knowledge knows the memory fragments of the original Abel.Half of them are slowly studying and self-study after crossing.

Today is October 5th, 2018.

After Abel flipped through these three indexes.An interesting phenomenon was discovered.

This interesting phenomenon is.

These three major indexes have fallen for three consecutive days since October 3.

Although the decline in the first two days was minimal.But this scale fell today.It can't be said to be negligible.

Because they are converted into the entire US stock market.This is a few tenths or 1% drop.That is, the market value of tens of billions of dollars in the entire market disappeared.

This degree of decline.

On this graph, it has been rare in recent years.Occasionally, there are some drops, but usually it will grow back the same day or the next day.

Even if it fell for two consecutive days.

Will rise back on the third day.

It is rare that it has fallen for three consecutive days as it is now, and it has been more severe than once.

It has been rare since the financial crisis of 08 and 09.

"Three red lines... three days in a row. Was it a coincidence, or something happened?"

Look at the three major indexes.

Abel looked up some recent major events that may affect the stock market.

Check it out.

There should be two major things that are most likely to be influential and can affect the US stock market.

The first one is international.It has a great influence on the whole world.That was the sweater war incident that lasted for several months.

The sweater war was initiated by the federal government led by the current president of the United States, Mr. Te Bukaipu.

It's just that Mr. President, I didn't expect to dare to fight over there.

There is a stalemate for now.There are wins and losses for each other, and China loses a little bit overall, but the United States is not without losses.

In addition to sweater wars.

The other is a domestic factor in the United States.And obviously, this factor has a much greater impact on the US stock market than the sweater war.

This event is the midterm election of Congress.

The federal midterm elections.According to the Federal Constitution, presidential elections are held every four years, and congressional elections are held every two years.

One of the congressional elections was held at the same time as the four-year presidential election, and the other was held during the presidential term.

The congressional elections held during the presidential term are "mid-term elections."

This year is the year of the midterm elections.The Donkey Party and the Elephant Party will decide the winner within this month.

The impact of this election is significant.It is likely to decide the presidential candidate in two years.In the 2014 midterm elections, the Elephant Party won a big victory.

Only then in the 2016 presidential elections every four years.Push up the current president of the Elephant Party that no one is optimistic about.

The midterm elections will not end until about a month later.

But its impact has already begun.

Because of the uncertainty of the election situation.The market has also become uncertain.Under this uncertainty.

Investors are worried about market changes.Then triggered the fall of the three major indexes.

Even without fate smoke prediction.Abel also feels before the results of this midterm election.

The entire US stock market will become very interesting.