The beginning of year 2016 seems to be struggling in term of momentum for major bourses across the globe. The main reasons are plunging oil price due to oversupply especially after sanction on Iran was lifted and also uncertainties on China economy. The rest of other issues are just causing many investors started to be panic and trigger major sell off condition. There are several issues over certain regions that causing the tremor on stock market such as:
1. Mid-east crisis - imminent war
a. ISIS/ISIL in Iraq, Yemen, Syria, Libya, etc
b. Saudi vs Iran
c. Turkey vs Russia
2. IMF rescue plan on struggling EU countries
3. FED interest hike
4. Presidential election - USA
5. TPPA
6. Spratly island
7. North Korea weapon program
So, as investors, these uncertainties are just tip of the iceberg. We never know what is the repercussion to the extreme end if all those matter materialize in near term. As precaution, no choice is available unless quitting from stock market for temporary basis until everything is stabilizing into a certain degree. Hope these explains the current situation on world economy turmoil.
Stay tune for next updates!
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