sancho panza

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  1. That bit in bold is the very essence of a debt deflation-lower lending leads to lower prices-lower prices leads to lower lending etc tec etc and not an interest rate rise in sight.Aussie dollar to start dropping soon which will see some price inflation emerge. Acadata-LSL/LCP already have SE leading the line down.Prices up here in the East Mids may not start dropping for another year especially if stocks get hit and you get capital flight to 'safety' aka frying pan into the fire.
  2. sancho panza

    Sasda off

    I think Asda has the bigger issue.The demogrpahic of Sainsbury's is much liikethe Tory membership-old and aging-however,they're unlikely to shop down the chain and go to Asda/Aldi/Lidl.I think Sians will struggle over the longer timeline but I think Asda has an immediate problem and your theory re walmart offloading while they can still get something for it is bang on. Asdas shoppers are quite comfortable rubbing shoudlers at Aldi
  3. The report by LF Economics then lists a slew of headwinds that will put further pressure on this still over-inflated market as it heads lower and on the banks. Here are some of them, quoted from the report: Mortgage application rejections: The rate of rejections has skyrocketed by over 1,000%, half of all new applications are rejected, 90% of those with pre-approval have their loan sizes reduced and refinance rejections have increased from 5% in 2017 to 40% in 2018. This is the outcome of the RC prompting lenders to abide by responsible lending obligations. With credit becoming tighter, rejections are likely to keep on rising, causing some potential borrowers to wait on the sideline. Interest-only-loan reset shock: Approximately A$120 billion in IO loans will reset to principal-and-interest (P&I) loans over 2018, 2019, 2020, and 2021, tapering off thereafter. Banks and regulators have already softened their stance on these borrowers, allowing some greater time to sell [the property] or extending the IO period for a while longer. Nevertheless, with debt repayments rising anywhere between 20% to 50% upon conversion to P&I, many recent borrowers will be placed under considerable financial stress. Class action lawsuits: A supportive legal and financial environment for class action lawsuits has hit fertile grounds with the RC revealing widespread criminality and misconduct in the financial services industry. Driven by the profit motive, experienced litigators will fund numerous class-actions on behalf of those harmed by the industry. In doing so, this may bring more criminality to light, reduce industry profitability, and force banks to adhere to the rule of law in a way the captured regulators have not done in decades. Foreign buyer exodus: China is the largest source of foreign investment into the housing market, in terms of both the number of purchases and value of investment. With China’s central government ramping up capital controls to stem the outflow of capital and imposing jail time for those facilitating such flight, purchases of new and established dwellings have fallen considerably. Furthermore, there is mounting evidence the Chinese government is now forcing the sale of properties owned by nationals and repatriating foreign currency back to the homeland. This will particularly affect the off-the-plan apartment complex market. Rent slowdown: The annual growth in nominal rents is very low and negative in real terms. Sydney is particularly affected given that nominal dwelling rent growth is falling by -3% annually and more so in real terms. With current construction rates delivering a considerable flow of new houses and units, nominal rents will continue to decline into the near future, harming the balance sheets of investors, especially those who are heavily negatively-geared [investors with rental properties that have negative cashflows whose only hoped-for benefits are capital gains and full tax deductibility of losses]. Construction faults: With the Opal Tower and aluminum-cladding scandals, the media and public have become more aware of the veritable plague of construction defects within the mass of apartment complexes and townhouses…. OTP [Option to Purchase contract] buyers may choose to relinquish their deposit rather than purchasing a potentially defective dwelling and bearing the future costs of rectification. In some cases, rectification costs are greater than the purchase cost of the complex, leading to an expected negative value. Expense benchmark crackdown: The RC indicated that lenders could not rely solely on expense benchmarks such as the HPI, HEM and internally-derived estimates [to determine if ongoing household expenses render a loan unaffordable]. Lenders must perform due diligence and obtain verified expense information from borrowers. This will significantly reduce the maximum loan size that can be originated, given such benchmarks have woefully underestimated actual expenses of borrowers, often by half or more. Comprehensive Credit Reporting: CCR is currently 50% active and will be 100% active by July 2019 as lenders are obliged to provide relevant borrower data to credit agencies…. It also allows lenders to see any and all existing debts of borrowers which may have been previously unavailable or hidden. Bank funding and capital raisings: International money markets have provided remarkably affordable funding, enabling lenders to originate large and risky loans. But they now face cost pressures. If house prices continue to fall, there are risks of credit downgrades stemming from lower profitability and rising non-performing loans (NPLs). This will likely cause wholesale funding costs to rise, particularly short-term rollovers and future hybrids, or other capital offerings despite backdoor coverage by the RBA. APRA is also requiring the major banks to raise tens of billions of dollars more to boost Tier 2 capital buffers, diluting earnings. For 2019, LF Economics anticipates nominal house prices (not adjusted for inflation) to drop between 15% and 20% in Sydney and Melbourne, on top of the drops suffered in 2018 and 2017. “While forecasts of -20% falls in a calendar year alone may be dramatic, some commentators will point to the significant run-up in prices over the years,” Lindsay writes. “This fails to note that housing is not a simple unleveraged ETF; it is a highly-leveraged play, amplified by fraudulent lending practices and Ponzi finance, with implications for financial stability on the downside.” And CoreLogic of Australia is getting outright gloomy: “Can we still describe this as an orderly slowdown in housing conditions?” Read… I’m in Awe of How Fast the Housing Markets in Sydney & Melbourne Are Coming Unglued From the Oz thread.Deflatrion cometh
  4. sancho panza

    The dud Kangaroo bounce thread

    WOlf lays in https://wolfstreet.com/2019/02/20/forced-end-of-ponzi-like-leverage-fraudulent-lending-turns-australias-house-price-bubble-into-property-bloodbath/ Forced End of “Ponzi-Like Leverage” & “Fraudulent Lending” Turns Australia’s House Price Bubble into “Property Bloodbath” by Wolf Richter • Feb 20, 2019 • 31 Comments What banks & housing markets in Sydney and Melbourne are facing in 2019. As investors are fleeing Australia’s housing bust, sales of new houses have plunged to record lows, and home prices in the Sydney and Melbourne metros have dropped 12% and 9% from their respective peaks in mid and late 2017. Combined, the two metros account for about two-thirds of residential property value in Australia. A two-decade-long housing boom, interrupted by only a few minor dips, led to two of the most magnificent housing bubbles in the world, and they’re not “plateauing” or anything. The over-ripe bubble was pricked not by rising interest rates – the Reserve Bank of Australia’s policy rate remains at record low – but when bank regulators finally started to crack down on some of the bank-lending shenanigans required to inflate that kind of bubble, and when the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (RC) was established in December 2017 to investigate those shenanigans and then started “revealing an epidemic of crime.” “The financial regulators, APRA and ASIC, have now been sufficiently embarrassed by the findings of the RC to force banks to adhere to responsible lending obligations,” writes Lindsay David, of LF Economics, in a report on the headwinds that the market and the banks face in 2019. The regulatory crackdown “restricts lenders’ ability to conduct business as usual,” he says, and this has “resulted in a credit squeeze.” Speculative investors who purchased more recently have been impacted the most. Some of them may try to sell either because they fear further price drops, or because they “have been caught out in the tsunami of IO [Interest-Only] loan resets.” But selling at survivable prices will be tough, as buyers at those prices have evaporated, “primarily due to stricter loan serviceability requirements,” as a result of the regulator crackdown, writes Lindsay David who has for years been warning about mortgage fraud and the now unfolding housing bust in Australia. “These developments risk turning the current minor credit squeeze into a looming credit crunch,” he says in the LF Economics report. The “so-called ‘property bloodbath,’” he writes, “is the inevitable outcome of the irrational exuberance driven by debt-financed speculation that has seduced and mesmerized a large proportion of society into becoming over-leveraged.” And the report points out how some of the banking shenanigans contributed to the bubble on the way up, and how curtailing them is contributing to the downturn now: Australia’s house price growth model revolved around Ponzi-like leverage, with lenders systematically accepting the unrealized capital gains of a property as a substitute for a cash deposit to borrow to purchase another property during the boom period. This has resulted in many property purchases using 100% financing, forming a clearly excessive cohort of speculative buyers that otherwise wouldn’t exist if lenders had adhered to responsible lending obligations. The declines in Sydney and Melbourne house prices since the peak in 2017 have diminished some of the unrealized capital gains, leaving speculative property buyers, particularly those who recently purchased, at or close to negative equity. Without enough unrealized equity to make a large so-called cash deposit, this cohort of buyers will increasingly be shunted to the sidelines with no ability to purchase. The report by LF Economics then lists a slew of headwinds that will put further pressure on this still over-inflated market as it heads lower and on the banks. Here are some of them, quoted from the report: Mortgage application rejections: The rate of rejections has skyrocketed by over 1,000%, half of all new applications are rejected, 90% of those with pre-approval have their loan sizes reduced and refinance rejections have increased from 5% in 2017 to 40% in 2018. This is the outcome of the RC prompting lenders to abide by responsible lending obligations. With credit becoming tighter, rejections are likely to keep on rising, causing some potential borrowers to wait on the sideline. Interest-only-loan reset shock: Approximately A$120 billion in IO loans will reset to principal-and-interest (P&I) loans over 2018, 2019, 2020, and 2021, tapering off thereafter. Banks and regulators have already softened their stance on these borrowers, allowing some greater time to sell [the property] or extending the IO period for a while longer. Nevertheless, with debt repayments rising anywhere between 20% to 50% upon conversion to P&I, many recent borrowers will be placed under considerable financial stress. Class action lawsuits: A supportive legal and financial environment for class action lawsuits has hit fertile grounds with the RC revealing widespread criminality and misconduct in the financial services industry. Driven by the profit motive, experienced litigators will fund numerous class-actions on behalf of those harmed by the industry. In doing so, this may bring more criminality to light, reduce industry profitability, and force banks to adhere to the rule of law in a way the captured regulators have not done in decades. Foreign buyer exodus: China is the largest source of foreign investment into the housing market, in terms of both the number of purchases and value of investment. With China’s central government ramping up capital controls to stem the outflow of capital and imposing jail time for those facilitating such flight, purchases of new and established dwellings have fallen considerably. Furthermore, there is mounting evidence the Chinese government is now forcing the sale of properties owned by nationals and repatriating foreign currency back to the homeland. This will particularly affect the off-the-plan apartment complex market. Rent slowdown: The annual growth in nominal rents is very low and negative in real terms. Sydney is particularly affected given that nominal dwelling rent growth is falling by -3% annually and more so in real terms. With current construction rates delivering a considerable flow of new houses and units, nominal rents will continue to decline into the near future, harming the balance sheets of investors, especially those who are heavily negatively-geared [investors with rental properties that have negative cashflows whose only hoped-for benefits are capital gains and full tax deductibility of losses]. Construction faults: With the Opal Tower and aluminum-cladding scandals, the media and public have become more aware of the veritable plague of construction defects within the mass of apartment complexes and townhouses…. OTP [Option to Purchase contract] buyers may choose to relinquish their deposit rather than purchasing a potentially defective dwelling and bearing the future costs of rectification. In some cases, rectification costs are greater than the purchase cost of the complex, leading to an expected negative value. Expense benchmark crackdown: The RC indicated that lenders could not rely solely on expense benchmarks such as the HPI, HEM and internally-derived estimates [to determine if ongoing household expenses render a loan unaffordable]. Lenders must perform due diligence and obtain verified expense information from borrowers. This will significantly reduce the maximum loan size that can be originated, given such benchmarks have woefully underestimated actual expenses of borrowers, often by half or more. Comprehensive Credit Reporting: CCR is currently 50% active and will be 100% active by July 2019 as lenders are obliged to provide relevant borrower data to credit agencies…. It also allows lenders to see any and all existing debts of borrowers which may have been previously unavailable or hidden. Bank funding and capital raisings: International money markets have provided remarkably affordable funding, enabling lenders to originate large and risky loans. But they now face cost pressures. If house prices continue to fall, there are risks of credit downgrades stemming from lower profitability and rising non-performing loans (NPLs). This will likely cause wholesale funding costs to rise, particularly short-term rollovers and future hybrids, or other capital offerings despite backdoor coverage by the RBA. APRA is also requiring the major banks to raise tens of billions of dollars more to boost Tier 2 capital buffers, diluting earnings. For 2019, LF Economics anticipates nominal house prices (not adjusted for inflation) to drop between 15% and 20% in Sydney and Melbourne, on top of the drops suffered in 2018 and 2017. “While forecasts of -20% falls in a calendar year alone may be dramatic, some commentators will point to the significant run-up in prices over the years,” Lindsay writes. “This fails to note that housing is not a simple unleveraged ETF; it is a highly-leveraged play, amplified by fraudulent lending practices and Ponzi finance, with implications for financial stability on the downside.” And CoreLogic of Australia is getting outright gloomy: “Can we still describe this as an orderly slowdown in housing conditions?” Read… I’m in Awe of How Fast the Housing Markets in Sydney & Melbourne Are Coming Unglued
  5. With you there Harley.I've moved some shrots back on after two motnhs off since early Feb.I think a lot of Western Stock Marets are looking toppy eg DJIA,CAC,DAX,FTSE.All looking overbought. SOIL ETF is a decent proxy that spreads the risk,obviously limits the upside edit to add:already own Nurtrien post Potash. I'm with you on the long term uptrend.I'm probably the worst PM mining investor on this board but I think even if we don't get a long term bull run(I think we will),we'll be reverting to long term trend as per @Majorpain chart.Either way you have to balance the risk of not having any PM exposure in a world where the CB's have prined a lot of cash AS I was saying to harley,I thinka few things could go sideways into May.At some point I expect PM's to diverge from broader equity indices
  6. sancho panza

    What's going to collapse next...

    Tories?
  7. Some of the comments are worth reading https://www.propertyindustryeye.com/staff-at-your-move-and-reeds-rains-brace-themselves-as-restructure-continues/ 'Members of staff at the LSL Your Move and Reeds Rains brands are today facing a crucial day. Sources tell us that employees affected by LSL’s radical restructure are expecting their third redundancy consultation today. The firm has previously said that 308 owned branches will be cut to 144. According to Alliance News, LSL will merge 81 neighbouring branches of Your Move and Reeds Rains, franchise off 40 existing ones, and close 43 branches. This will reduce the Your Move and Reeds Rains estate to 280 branches from 404. The restructure will be costly, with LSL saying that it is setting aside £15m. Staff sources say they have not been given actual numbers as to redundancies, but claim that premises have been shut and furniture removed. We asked about redundancy numbers and which offices were closing. A spokesperson for LSL told EYE yesterday afternoon: “The creation of keystone branches across Your Move and Reeds Rains will lead to some branches merging and others closing. “Some staff continue to be in consultation and we remain focused on supporting them through this process.”' smile please February 19, 2019 at 08:55 #6 It may be costley with the restructuring but i have seen the figures for 2018 trading for a number of branches, believe me this will save them money. Some of the figures i have seen a branch do in a year you would do in a month. Robert May February 19, 2019 at 11:19 #8 Tranmsaction volumes are reducing, year on year on year. The affordability of £ means that when couples move in together the spare property can be retained, not sold and will generate an income greater than the cost of owning it. When people die it makes sense that properties are kept rather than sold and despite the changes in taxation on BTL renting out property is still a better investment than a ha’pence for every pound lodged with building society or pension annuity. Transactions are contracting at about 2% a year so 10 years on from the crash, prices might have recovered (a bit) but transactions are down about 10%. Fee erosion (which i was told I was imagining) adds to the pressure on sales income and then a market which many negotiators have never witnessed before all create a perfect storm. Corporate and independent agencies are in a fight for saleable instructions, the surety of a salary in a difficult market might be a benefit for a short wile but ultimately it can make corporate branches feel isolated from a recession that’s happening around them. Sadly there comes a time when the FD’s has to act. Himanshu took Countrywide back to basics LSL are following a similar path. Independent agents don’t have this sort of corporate uncertainty hanging over them but they ought to have a weather eye on good costs turning bad.'
  8. sancho panza

    Sasda off

    'Customers could see higher prices and less choice if the two grocers combined, the Competition and Markets Authority (CMA) said. It said it could block the deal or force the sale of a large number of stores or even one of the brand names. The CMA's Mr McIntosh said: "We have provisionally found that, should the two merge, shoppers could face higher prices, reduced quality and choice, and a poorer overall shopping experience across the UK. "We also have concerns that prices could rise at a large number of their petrol stations."' And Sainsbury's were saying customers would see lower prices and more choice.Who to beleive????
  9. sancho panza

    Brexit-Deal or No deal?

    Hodges again https://www.icis.com/chemicals-and-the-economy/2019/02/companies-and-investors-have-just-30-working-days-left-to-prepare-for-a-no-deal-brexit/ Companies across the UK and EU27 are suddenly realising there are now just 30 working days until the UK will likely abandon its 45-year trading relationship with the EU, and start to trade on WTO terms. If this happens, every supply chain involving a movement between the UK and EU27 will change. And all those supply chains governed by EU deals outside the EU will also change. A large number of industries are already being impacted: Scotch whisky exports to Korea worth £71m ($90m) a year, risk a 20% tariff after 29 March if the EU’s Free Trade Agreement is replaced by WTO rules. It is now too late to export by boat, causing some exporters to use expensive air freight to beat the deadline. But capacity is already almost full. Many banks, insurance companies and asset managers have already moved staff from London into the EU27. They cannot risk waking up on 30 March to find they can no longer serve customers from London, because they have lost the essential EU “passport” “CE Marks” issued in the UK will no longer be valid in the EU27 after No Deal – making it difficult to sell any goods that need safety, health or environmental approval. And last week, BASF’s UK MD, Richard Carter, told Ready for Brexit that for the world’s largest chemical company: “The thought of having to re-register with a UK REACH equivalent if there is no deal and if there is no recognition equivalence is a huge concern”. THE UK REMAINS ON COURSE TO LEAVE THE EU WITH NO DEAL ON 29 MARCH But surely, you say, “this cannot happen”. After all the UK’s main business organisation, the Confederation of British Industry, has already warned that No Deal would create “a situation of national emergency“. But the leading Tory Brexiters don’t believe this. Their 111 votes, combined with the 10 votes from the Democratic Unionist Party, meant premier May’s Withdrawal Agreement was defeated by 230 votes last month. It would have provided a Transition Agreement until the end of 2020. However, their votes then swung behind her to defeat the motion of No Confidence in the government, which would have led to a general election. Why did they do this, you might ask, given they had just voted against her key policy? The answer is that the Brexiters have a completely different view of the Brexit negotiations, as I noted in The pH Report last year. They simply don’t accept the CBI argument. Instead they believe the EU27 will be the main losers from No Deal as they argue the financial outcome will be: “Plus £651 billion ($875bn) for the UK versus minus £507bn for the EU: it could not be more open and shut who least wants a breakdown.“ In their view, the EU27 will be forced to offer a better deal if the UK just leaves on 29 March. They also, as I noted here in December, will be quite happy to see the end of key industries such as autos, as the leading Brexiter economist Prof Patrick Minford told the Treasury Committee in October: “You are going to have to run it down … in the same way we ran down the coal industry and steel industry. These things happen.” The alternatives to No Deal are now also extremely limited. The Caroline Spelman/Jack Dromey resolution to block No Deal was passed last month by 8 votes. But it was only a resolution and has no legal force. Of course, Parliament might change its mind and decide to vote for May’s Agreement. Or the government might revoke its Article 50 notification before the UK leaves on 29 March. But both would split the Tory and Labour Parties and are unlikely to happen. The government could also decide to hold a second referendum. But again, this would split both parties and is unlikely. It is therefore hard to disagree with the independent Institute for Government, who concluded: “Britain’s politicians are unwilling to put jobs and the economy above party politics.” The only other option is for MPs to effectively take over the government by demanding that it stops No Deal. It is not clear how this could happen, but presumably they could pass legislation demanding that May asks Brussels for a lengthy extension to Article 50. But such a move by Parliament has never happened before. It would need key Ministers such as Chancellor Philip Hammond to vote against their own government. It would also need support from enough Opposition MPs to overcome Brexiter resistance. It would also risk a constitutional crisis, as it would replace an elected government. And in terms of practicalities, it would presumably also mean that the UK would take part in the EU Parliament elections, as it would still be a full EU member in May. The whole process would take the UK into completely uncharted water. THERE ARE JUST 30 WORKING DAYS LEFT TO PREPARE FOR A NO DEAL BREXIT Anticipating this risk led me to co-found Ready for Brexit last year, to help businesses navigate the challenges and opportunities created by Brexit. It is effectively the one-stop shop requested recently by the CBI. It provides curated links to all the areas where you may need to urgently prepare for Brexit. The video explains what WTO rules could mean for your business. Please watch it now, and then decide if you need to start planning today for whatever may happen on 29 March.
  10. Not sure on the significance https://moneymaven.io/mishtalk/economics/redbook-retail-index-confirms-commerce-department-december-retail-collapse-37vfi1tFgkm79UuqJrEXCQ/ Some economists were in disbelief regarding the huge collapse in retail sales in December. Other indicators now confirm. Jonathan Tepper ✔ @jtepper2 Last week everyone said retail sales numbers had to be wrong because Redbook survey hadn’t declined. This chart answers that question. Mitch Nolen Retail @mitchnolen A private survey of retail sales is showing a sharp 50% slowdown in y/y growth in the early weeks of 2019. The Redbook Index isn't as large or as closely watched as the Commerce Dept. survey, but it isn't providing optimism in the wake of the government's weak December report. That chart is weekly. Ideally, we need to see monthly and it wasn't posted. Redbook The Johnson Redbook Index is a proprietary indicator of growth in retail sales, and provides advanced estimates of trends in retail sales ahead of official releases and company reports in an easy-to-read four-page report. The weekly indicator is made public every Tuesday morning, with clients receiving notice via conference call, e-mail or fax prior to public release. The Johnson Redbook Retail Sales Monthly is a comprehensive report of same-store sales data reported monthly by general merchandise and apparel retailers. Analysis is given on current month sales, year-on-year, quarterly and annual sales, historical sales data and company rankings. Retailers are tracked across categories: Apparel Specialty, Books, Toy & Hobby, Department, Discount, Footwear, Furniture, Drug, Home Improvement, Home Furnishings, Electronic, Jewelry, Sporting Goods, and Miscellaneous. The Johnson Redbook Same-store Sales Index (SSI), an index of year-on-year same-store sales growth is reported in each edition. Shockingly Weak Retail Sales Redbook ties in with my report Shockingly Weak Retail Sales: Down 1.2% in December, Sharpest Decline Since 2009 And its not just retail sales either. Other Confirming Indicators Autos: Surge in Auto Loan Delinquencies: Auto Loans in High Gear Credit Card Stress: Household Debt Up 18 Consecutive Quarters to a New Record, Card Stress Rising Falling Imports: Trade Deficit Shrinks in November Primarily Due to Falling Imports Industrial Production: Industrial Production Dives, Wiping Out a Strong December and Then Some Very Recessionary Add it all up and it looks very recessionary. And the EU is already there. Eurozone Recession: Right Here, Right Now! There is no reason to believe the US will be immune to a global slowdown. People thought that China would decouple in 2008. It didn't. The US won't either.
  11. https://wolfstreet.com/2019/02/17/the-wolf-street-report-whats-causing-the-subprime-auto-loan-fiasco/
  12. Overshcarged,maybe.Shafted is getting charged for an air filter and they don't even lift the cover.
  13. Sad but true. A great analogy from your friend. And strangely,even amongst my middle class circle of acqauintance,teh only invesmtent anyone champions is property.Even the ones in finance,which shows how badly most pensions are managed.
  14. The sales being registered in the monht sold makes sense to me given importance of price volume data ge nerally. Here quotes transactions above £40k as 90k provisional for England for Oct 18 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/771859/UK_Tables_Jan_2019__cir_.pdf Then 4.1 4.1 Sales volumes Number of sales volumes by country Country October 2018 October 2017 England 66,599 77,047 Northern Ireland (Quarter 4 - 2018) 5,736 6,784 Scotland 9,003 9,047 Wales 3,911 4,471 Absolutely,can't wait until Sydney is in full on crash mode.
  15. My peronal bear market bottoms from a trading perspective would be FTSE to 4500,CAC/DAX 3000,S&P 900. I'm not using any rocket science here but long term reisistance lines. What I find fascinating is looking behind the headline numbers for the big story in terms of market caps.One I'll put my head above the parapet for is that Vodafoen( we hold a few but not as many as we wiull ultimately) will lead the next surge and will take the 100 with it. I agree on Amazon-the opposition will gear up-and I think a lot of the more low margin sellers will dsappear.I also think Facebook/Netflix both going sub $50t,that Apple will see some huge-and I mean huge stock declines sub $30 (currently $170). Just my views. From Aug 18 https://www.bloomberg.com/news/articles/2018-08-09/s-p-500-s-dependence-on-fang-stocks-grows-as-record-nears-chart The FANG stocks and their peers largely explain why the S&P 500 Index is flirting with records again. Facebook Inc., Amazon.com Inc., Netflix Inc. and Google’s parent, Alphabet Inc., combined with Microsoft Corp. and Apple Inc. to account for 38 percent of the S&P 500’s gain from a Feb. 8 low to Wednesday, according to data compiled by Bloomberg. These stocks collectively produced 19 percent of the index’s gain in the six months before its latest record, set Jan. 26. Wednesday’s close was 0.5 percent below the January high.