Yingya Securities Consulting: the more you panic, the more you need to keep calm

  Yingya Securities Consulting: the more you panic, the more you need to keep calm
At 21:30 Beijing time on March 9, US stocks fell sharply at the opening, and the S & P 500 index quickly fell to 7%, triggering the first layer circuit breaker mechanism and suspending trading for 15 minutes
This is the second blow of US stocks after 23 years
As of the closing of U
S
stocks, the three major indexes of U
S
stocks fell by more than 7%, and the Dow plunged to a new low of 2013
76 points
Large US technology stocks, financial stocks and oil stocks suffered losses across the board, with apple, Google's parent companies alphbet and Netflix falling more than 7% and Tesla falling more than 12%

 
This is very rare in the history of the U
S
stock market, and it has only happened twice so far
The fuse design of the United States was released only after the 1987 stock market crash
At that time, on October 19, 1987, the U
S
stock market suddenly plummeted in a good bull market, falling by 22% in one day
The first scene in the book of black swan was the market crash in 1987
Some traders really couldn't afford it and chose to jump off a building to end their lives
If you were in the environment at that time, I'm afraid it would be no different from the end of the world
The vast majority of people could not survive the 1987 stock market crash

In order to avoid the recurrence of the sudden stock market disaster in 1987, Americans first studied and invented the fuse
The original intention is to call a long pause
It sets three levels, divided into 7%, 13% and 20%
When the fuse of 7% and 13% is triggered, the stock market will stop trading for 15 minutes
If the third fuse of 20% is touched, the stock market will stop trading until the close of the day
On October 27, 1997, the US stock market triggered the circuit breaker mechanism for the first time, and the stock disaster reappeared
Coupled with the Asian financial crisis sweeping the world, many people fled

In response to the sharp decline in the financial market on March 9, many people shouted that the financial crisis caused by the epidemic was coming and might escalate to an economic crisis, but in fact, this abnormal market performance was fundamentally influenced by emotions
For example, the dollar fell, gold did not rise, interest rates fell and the stock market fell, but everyone was interested in treasury bonds
The US 10-year Treasury note * rose by the limit yesterday, and the UK Treasury bond * also rose sharply in a row
This is a very tangled performance
Not only feel the danger, but also unwilling to withdraw from the market

Yingya securities advisory reminded: the epidemic has brought more psychological impact
In fact, the hard currency has not caused much loss
The more in the global panic, the more we should keep calm, otherwise it will always be just a mob