I can also wonder on what is behind the stockmarket jitters.
First of all, the Tesco share price fell, on it coming to light that the profits forecast had been overstated by £250 million. This is a healthy retailer, doing well, although its market share of the multi-billion staple products market is only given up a little bit; prospects may be there for a refocus and recovery. Also, I believe the overstatement may be much shorter. This is my private view, after some research of their figures. I would suggest it is the wrong time that Warren Buffett has sold his stake; to the contrary, he should have added to it. (I don't own any Tesco shares, and I have no vested interest to be optimistic about them. Just objectively, I think now their shares would be a good long-term investment).
Now, the Shire share price has plummeted, wiping off several billions in the stock market. This simply because of the expected merger is off. So what? It still remains a sound pharmaceuticals company, and likely to find another suitor or do well as it is.
Today, after revealing growth of 3 million subscribers, Netflix has seen the share price fall. Surely, people expect miracles with profits growth.
Really and truly, the way I see it, the market jitters can be attributed to one main factor hitting Wall Street - the coming to an end of the Quantitative Easing Stimulus, whose last instalment of $15 Billion for October is currently in the system. The easy money was certainly feeding through the markets, and keeping them buoyed up.
I believe the DOW will head for 18,000 over the next 18 months, but it will be a slow steady inching upwards. The $2.15 Trillion fed into the U.S. economy since 3rd August 2011 has done its share of good, creating several million jobs and dare I suggest quite a few millionaires. The additional stimulus under Dr Yellen's tenure of the Federal Reserve since beginning of this year has been another $400 billion. This has been phenomenal, and sustained people and enriched them. A lot of companies have traded well, and have built up large reserves in their coffers. It only remains for the huge amount of fat in the system to work its way through, and everything should continue to be alright. The worldwide economic Recovery shall turn to Prosperity, with creation of many jobs even without the Stimulus. That is my belief, and I anticipate good U.S. jobs figures at the end of the month, although some rotten numbers have been registered currently. The organic growth of the economy is going to take faith, confidence and a willingness to share. The big corporations can help their reserves turn into paypackets for people, so that the nation can prosper. A common prosperity should arrive by November for all Americans, for this I pray. So long as corporations create jobs and share their fortunes, and companies who can afford pay their workers the minimum $10.10 per hour being championed by President Obama, then of course a Prosperity will come into being, to strengthen further into the future, giving me the opportunity to refer to it as the worldwide economic Prosperity.
In the meantime, I wish you joy and light.