The Dow may drop another 2,000 points before the stock market selling is done: CNBC CFO survey

Tuesday, November 20, 2018
By Paul Martin

The Dow will drop to 23,000 before it ever reaches above 27,000 again, according to just over half of CFOs on the CNBC Global CFO Council in a recent survey.
That would represent an 8 percent decline in the Dow from its current level.
The trade war with China is the No. 1 concern among CFOs in the fourth quarter.

Eric Rosenbaum
CNBC.com
11/20/2018

The Dow plunge isn’t anywhere near done. At least, not according to chief financial officers at major corporations.

More than half of the members of the CNBC Global CFO Council think the Dow Jones Industrial Average will fall below 23,000 — roughly 2,000 points from its current level — before the stock market barometer is ever able to top the 27,000 level. The 23,000 level would equate to another 8 percent in decline among the Dow group of stocks before the selling stops. The Dow dropped by more than 400 points on Monday.

The CNBC Global CFO Council represents some of the largest public and private companies in the world, collectively managing nearly $5 trillion in market value across a wide variety of sectors. The survey was conducted from Nov. 13–19, 2018.

Just over 51 percent of CFOs taking the survey have come to this pessimistic view of stocks, which represents a high in the CNBC quarterly CFO survey for 2018. When stock market volatility first spiked in Q1, 42 percent of CFOs thought a drop to 23,000 was coming. But 31 percent of CFOs were still of the mindset that a new record above 27,000 was more likely, and the market optimism increased by the third quarter to 50 percent of CFOs believing 27,000 was possible.

Now only a little more than 13 percent of financial officers believe the market will reach a new record before another major drop.

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