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Speaker 1: Welcome to Ask Fear and Greed, where we take your

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Speaker 1: questions and do our best to answer them. I'm Michael Thompson,

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Speaker 1: and good afternoon, Sean Aylmer.

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Speaker 2: Good afternoon, Michael.

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Speaker 1: Sean, goodness me. Today's question comes from Dave and he

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Speaker 1: shared it with us via the website. He went to

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Speaker 1: Fearangreed dot com dot au and he sent his question

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Speaker 1: in through there. You can also do it through LinkedIn

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Speaker 1: or Facebook or Instagram, any of the social media platforms really,

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Speaker 1: but Dave's done it via the website. He says one

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Speaker 1: for Ask Fear and Greed. Sean uses various terms for

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Speaker 1: share price movements through you here bye, and he says,

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Speaker 1: I wonder which ones actually means something and which ones

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Speaker 1: and which ones are just to make more interesting copy.

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Speaker 1: I assume he says bounced is different from rose, and

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Speaker 1: spiked is different from increased, plus is different from dropped?

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Speaker 1: Or is it for me? Anything less than a five

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Speaker 1: percent change is just noise if you're not a day trader.

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Speaker 1: So that's interesting. Can Sean please give us a definitive

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Speaker 1: list of the phrases to pay attention to. I'm looking

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Speaker 1: forward to new terms like rocketed and limped along.

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Speaker 2: Day. You're a man after my own heart.

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Speaker 1: Well glorious, isn't it.

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Speaker 2: Yeah, you have called me out pretty well. Because you

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Speaker 2: can't just say the share market rose, the share market fell.

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Speaker 2: Every time. You've kind of got to add some color

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Speaker 2: to it. The bottom line in this really the only

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Speaker 2: terms that actually have a meaning. When a market goes

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Speaker 2: up by ten percent or down by ten percent, it's

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Speaker 2: officially known as a correction. So if I ever used

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Speaker 2: the word correction, that means from the previous lower or

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Speaker 2: the previous peak, it has changed by ten percent. Okay,

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Speaker 2: so that's a correction. And then a boom and bust

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Speaker 2: is actually twenty percent. So I market from its bottom

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Speaker 2: to a new peak. If that's twenty percent or more,

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Speaker 2: that's a boom market. And similarly, if it goes from

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Speaker 2: a peak to twenty percent less, it's a bust market.

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Speaker 1: Is there is there a specific amount it has to

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Speaker 1: fall in order to use the term crash?

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Speaker 2: Ah? So crash, No, there isn't a term but a crash.

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Speaker 2: Certainly in journalism we only ever used crash when it

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Speaker 2: really fell. We're talking ten to twelve in a session.

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Speaker 2: So when we're talking about boom and busts and corrections.

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Speaker 2: They tend to be over a period of time. But

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Speaker 2: when a crash, you know, a ten percent, twelve percent,

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Speaker 2: fifteen percent drop would be a crash. I don't tend

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Speaker 2: to use the word crash unless that has happened. And

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Speaker 2: I remember working as a journalist in October two thousand

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Speaker 2: and seven and the basically the fin Review talked about

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Speaker 2: the market crashing, and I said, is it a crash?

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Speaker 2: And I remember my editor at the time saying, well,

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Speaker 2: if this is a crash, what is The famous even

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Speaker 2: more famous example was in nineteen twenty eight when the

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Speaker 2: Wall Street Journal I think it was the New York Times,

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Speaker 2: I think it was the Wall Street Journal. The first

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Speaker 2: sentence the day after the big crash was Wall Street

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Speaker 2: crashed yesterday. That's it. That's just what the sentence said.

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Speaker 2: So that's crash. All these other terms that we're talking about,

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Speaker 2: you know, spike tends to meet it went up and down,

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Speaker 2: pete doesn't it sort of means something similar but not

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Speaker 2: quite the down path, just sort of hit a peak.

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Speaker 2: Plunged is certainly a big drop. Drop is just a

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Speaker 2: smaller plunge.

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Speaker 1: Really, really, now it's getting into the color like we

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Speaker 1: are plummeted. Do you like plummeted?

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Speaker 2: Plummeted I don't like as a word, because plummeted to

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Speaker 2: me means I mean, that's a crash, isn't it? Okay,

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Speaker 2: a plummet.

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Speaker 1: Sword is nice kind of sword. That's that's that's. I

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Speaker 1: mean when you see a company's we're talking individual stocks here,

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Speaker 1: if you see a share price shoot up by kind

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Speaker 1: of ten or fifteen percent in a day, you would

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Speaker 1: say that that share price sawed yesterday. I mean I

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Speaker 1: have done that in the afternoon report when I've been

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Speaker 1: filling in for you, which is actually a confession. You

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Speaker 1: probably didn't know that.

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Speaker 2: I'm sorry, Yeah, no, I mean sword is it is?

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Speaker 2: You don't want to overeg it. And Dave's point here

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Speaker 2: is anything less than five percent change is just noise,

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Speaker 2: unless you mean, if you're not a day trader. I

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Speaker 2: think that's right. I mean the point here is that

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Speaker 2: we say National Australia Bank went up yesterday one point

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Speaker 2: one percent. It's not that much. I mean it did

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Speaker 2: hit a seventeen year high. That's probably more interesting than

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Speaker 2: the one point one percent. But Dave, you've got to

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Speaker 2: understand we're talking about the markets every day, and we

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Speaker 2: sometimes do overriggit. Perhaps that's the point. There are certain

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Speaker 2: stocks like wise Tech Global. I have continually talked about

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Speaker 2: that going up five percent or two percent for months

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Speaker 2: months now, and I think it's up seventy percent over

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Speaker 2: the last twelve months or so. So it's cumulative effect

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Speaker 2: of those small increases is certainly significant. But broadly Dave's right,

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Speaker 2: don't get too excited if a market, you know, share

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Speaker 2: goes up one or two percent or down one or

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Speaker 2: two I think it's quite easily going to reverse the

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Speaker 2: next day.

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Speaker 1: And how about I'm really just using this now as

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Speaker 1: for my own education, how many kind of of these

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Speaker 1: sub indices need to be to finish the day down

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Speaker 1: in order for it to be a sea of red?

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Speaker 2: Ah, the sea of red. So it's not even the

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Speaker 2: sub indicy. So you can actually have two sub diseas

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Speaker 2: up nine down, but the tour up like financials and resources.

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Speaker 2: So therefore the market ends up, if you know what

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Speaker 2: I mean.

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Speaker 1: So gotcha? Okay, So really it's just overall, then you

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Speaker 1: need an overall.

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Speaker 2: The telecommunication index is basically Telstra. There's not a lot more.

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Speaker 2: There are three or four companies see read day, Michael,

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Speaker 2: I reckon seventy five percent. You're allowed to say you see.

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Speaker 1: Read pride, and before that, it's what a lake of

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Speaker 1: read and then just a pond of red and then

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Speaker 1: just a trickle.

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Speaker 2: There's just a trickle, a creak of red running through

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Speaker 2: the green. Yeah.

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Speaker 1: All right, Well, Sean, I've taken notes on this, and

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Speaker 1: really the one thing that I have written down, as

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Speaker 1: you can see, and I have circled over and over again,

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Speaker 1: is just don't over egg it is the is the

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Speaker 1: take home message here, which I feel like is a

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Speaker 1: message that was tailored pretty much just for me.

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Speaker 2: The melodrama king.

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Speaker 1: Yeah, it's also a message that I probably will disregard. Dave. Look,

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Speaker 1: I hope we've answered your question. I think I've actually

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Speaker 1: learned a lot today. Not saying that I wasn't expecting

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Speaker 1: to when we came into it, but you have certainly

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Speaker 1: exceeded my expectations today.

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Speaker 2: Sean, thank you very much. Take that as a compliment.

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Speaker 1: Well you should, because certainly intended as one. And thank

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Speaker 1: you Dave for the question. If you have your own

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Speaker 1: question that you would like to put to Sean, it

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Speaker 1: can be something about language, it can be about business.

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Speaker 1: It can be about the economy, be about anything really relationships.

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Speaker 1: We haven't counseled anyone through a breakup yet, happy to

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Speaker 1: do that. Then send your question in through LinkedIn, Instagram, Facebook,

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Speaker 1: or do what Dave did in head to the website

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Speaker 1: Fearangreed dot com dodau. I'm Michael Thompson and this is

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Speaker 1: asked Fear and Greed