The White Tuesday

Global news agencies have reported the loss of shares in the global currency markets at the beginning of February and followed them with economic analysis in the hope of obtaining a clarification of the causes of these losses.
In this context, Richard Quest CNN’s foremost international business correspondent and presenter wondered about “The future of the global financial markets” after providing a detailed explanation using the latest technology techniques that tracked the stock market events from the Far East in Japan and Australia to Korea and China and finally until reaching New York with the Dow Jones industrial average closing down 1,175 points; its worst point drop in history since August 2011.

Here in Media In, we strongly believe that most of the economists in the world, especially the elite in the Arab world, will follow the example of Mr. “Quest” in his economic analysis of the causes of these losses and their consequences, citing that to the economic recession in the world and expectations of increasing interest rates and other Natural and unnatural causes of rising or declining of stock indices.
However, the most important question that wasn’t asked in this brilliant analysis is where did the global stock funds go?
If a large number of investors all over the world sold a large amount of shares at the same time, it makes sense that a number of other investors would buy these shares in cash, otherwise it is neither sale nor purchase process, but a  mere offer and demand. So, what really happened yesterday was a massive sell-off that called for a pause to listen carefully to the views of economic analysts around the world.
The question remains unanswered as we can see; global stock indices are as red as blood. If investors sell shares, it is normal to collect sales. And If the collection in banks,  then this means that the value of shares of those banks are accumulated in  large amounts of money and which is expected to remain for a long time in there  and may be punctuated by successive economic storms.
The sixth of February this year which happened to be on Tuesday would be probably called the black Tuesday by many of those who lost their shares and money, however; we wish them to recover the rest of their shares in the coming days as optimism might turn a black Tuesday into a white Tuesday in the near future.

Yasir Almahri

2018/02/07