FYI: Ten years after financial markets around the world tumbled toward chaos, they have an anniversary present for you: more stress.
After a gain of nearly 7 percent in the third quarter, October ushered in a rout in the U.S. equity markets. The Standard & Poor’s 500 index plunged 6.7 percent from Oct. 3 to Oct. 11, with Asian and European equities following suit. On Oct. 12, the S&P 500 bounced back with a 1.4 percent gain.
The equity market drama comes amid recent violent surges in Treasury yields and rising trade tensions. As earnings season begins, fear is mounting that these forces will cut into corporate profits and sound the death knell for growth stocks. Meanwhile, a strong U.S. dollar and heavy debt loads in many emerging markets, together with the trade turmoil, are leading to lower estimates for global economic expansion.
It’s a challenging period—and an opportunity. The market’s inevitable cycles, however painful, are made for disciplined investors.
Regards,
Ted
https://www.bloomberg.com/features/2016-how-to-invest-10k/?srnd=premium
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