I see some other issues with any shut down too:Kahuna always respect your take on things but the markets must remain open its the only a valuation can be made.
Too hard. Tomorrow a dogs breakfast for all ....
Perhaps Kahuna does carry on a bit. Doesn't change the validity of his concerns IMV.
Smurf, you nailed it with this one commentIt's a human virus, not a computer virus.
There are very serious problems, no question about that, but pausing the trading of shares won't solve them in the slightest.
38,211 USA cases as of 5.37 am and a few hours PRIOR to USA derivatives opening.
It is true that closing the stock exchange won't cure COVID-19.There are very serious problems, no question about that, but pausing the trading of shares won't solve them in the slightest.
With respect it looks like a classic case of hitching an unrelated agenda to an otherwise valid cause.
I could equally say that because of the virus we all need to cook a BBQ tomorrow and all wattle trees must be cut down by not later than Tuesday afternoon. It won't help in the slightest of course but nor will closing the ASX. It's a human virus, not a computer virus.
Anyone who does not wish to participate in the market can easily avoid doing so with the market remaining fully operational. There's no compulsion for anyone to invest in it.
It is true that closing the stock exchange won't cure COVID-19.
I thought long and hard before posting why I believed a very long closure was necessary.
My view is that markets will contribute unnecessarily to the pervading doom and gloom. We who are in the market can instead put our thoughts to more pressing matters and have one less thing to worry about for a few months.
Most importantly I reached the conclusion that the net effect of remaining open will not be much different to having it closed and re-opening in 6 weeks time - or longer. On the other hand, the millions of mum & dad investors that are presently rattled by what is happening are likely to make many poor trading decisions, and be scalped by market professionals.
That will destroy the mental health of many, along with their ability to recover what are likely to already be heavy losses.
It took Wuhan 2 months to turnaround their situation.I think you might be right, but if the market is closed, for how long ?
I don't think it should open again untill the news is better and the virus has been contained, otherwise it will just be more of the same. That could be months away.
So if they shut the market they would have to be prepared for it to be shut for quite a long time.
I see some other issues with any shut down too:
1. It sends a very clear message to the public that there's a serious financial problem. Expect a run on physical cash at the banks if the public perceives that things are in peril financially beyond simply seeing share and oil prices decline etc. Actually shutting the market would send a message that things are stuffed.
I think there is a very real possibility there will be a run on banks if the TP debacle is anything to go back which will in turn have the govnuts put a withdraw brake on very fast, which will in turn cause even more panic and instability.
I do see the point you are making there.It is true that closing the stock exchange won't cure COVID-19.
I thought long and hard before posting why I believed a very long closure was necessary.
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