Clem Chambers – founder of ADVFN – spoke to Tip TV CEO, Nick Batsford, about how this weekend’s market selloff could provide ample buying opportunities for savvy investors waiting to enter the market.
FTSE 100 on net losses for the year
The FTSE 100, which has seen sharp decline over the weekend following another market slump China and Oil prices dropping below $40, only has further to fall says Chambers. His belief is that it could witness a 500-600 point loss, and expects the right buying level to be around 5500 and lower. Even greater losses could run parallel in the US, as Chambers believes the Dow Jones index could go as low as 14,500.
Market crash hinging on China
A flash crash of 25% in the markets is the norm in a 5-6 year cycle, but Chambers believes China are trying their best to prevent the inevitable. With consistently high levels of inflation due to cash being pumped in to the country, any civil unrest in China could be a catalyst for a major market crash upwards of 50%.