We first consider a sharp correction, where stock prices fall 20% in Q1 and stay flat afterwards, reminiscent of the 20% Black Monday crash in 1987. In this scenario, we estimate that the growth impulse from equity prices turns from a +0.6pp boost currently to a -0.5pp drag by early 2019 on a 4QMA basis, as shown in Exhibit 4. All other things equal, this bear market would still result in positive GDP growth in 2018 of 1.9% on a Q4/Q4 basis—significantly below our 2.6% baseline forecast—but have only a minor negative effect on growth in 2019.
Having brought up the nightmare scenario, Goldman then amicably concludes:
"We conclude that the recent run-up in equity values is a key contributor to current strong growth, and that sharp stock market moves represent an important two-sided risk to our constructive near-term growth forecast."
https://www.zerohedge.com/news/2018-01-25/goldman-shows-what-market-crash-will-do-economy
The dollar continues to weaken
And the Yuan is rising
Bitcoin looks ready to take off too
Hehehe Bitcoin always ready to take off, It is one of the best cryptocurrency after all, Hope for the best though :)
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thanks for shareing
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Very interesting, hard to say how crypto currencies will react if the stock exchange crashed? It may not be affected because of the amount of money from Aisia has invested.
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