The S&P/ASX 200 Index (ASX: XJO) is falling again. It has dropped by around 2.5% a day for two days in a row. What does this mean?
Investors have been talking for some time about a potential second leg down for the ASX 200. Could this be it?
There are a number of different reasons why the share market could be falling, so it's probably best not to get too hung up on guessing why it's down. For the ASX there could be a lot of superannuation sales at the moment to fund upcoming redemptions. And US President Donald Trump is talking about banning immigration to the US.
The important thing to know is that the ASX 200 is dropping again and it's presenting us with lower share prices.
How far will the ASX 200 fall?
No-one can know. Will we test those ASX 200 23 March 2020 lows? Will it go further?
The fundamental healthcare issues still haven't been resolved. The unemployed number keeps rising in Australia and in the US. There may be more businesses that go into administration if restrictions are required to continue further into 2020.
However, central banks have learned from the GFC and have put enormous liquidity into the market. Australia's government has also been very decisive with the huge jobkeeper package. There are reasons to be positive for the medium-term about the ASX 200.
I don't know where the ASX 200 will go this week, next month or the rest of this year. But I do know that history has shown has the share market generally keeps rising over time.
I've got my eyes on plenty of ASX shares that I might end up buying later this week or next week.
