The blue-chip Dow Jones Industrial Average (DJIA) fell 185 points on Tuesday, prior to rallying to cut its loss—but this was followed by a 170-point intraday decline on Wednesday.
While China is struggling with its gross domestic product (GDP) growth metrics, the country’s main stock market—the Shanghai Composite Index (SCI)—is easily outperforming the S&P 500 and NASDAQ.
October has provided the usual bouts of anxiety that have characterized the month in past years. I warned that we could see volatility and so far, this has been the case.
It always seems prices at the pumps rise much faster when oil prices increase, but they move much slower when oil prices decline. I guess that’s big oil for you.
In spite of the debate over whether Obamacare, also known as the Affordable Care Act, is good or bad for the nation’s healthcare sector, what I do know is that the additional policies will likely drive up the demand for healthcare services and products as an investment opportunity.
Russia is a major trading partner with the eurozone as well, supplying about 40% of the energy requirements in the area. That is why an escalation in Crimea could devastate the region, especially at a time when the economy is finally growing in the eurozone.
A possible increase in interest rates would reduce total investment in the economy and push up the endangered U.S. dollar. Although most economic analysts don’t see such an increase happening before the start of 2015, higher rates can put the brakes on the bull market run in the key stock indices.
After the year we had in 2013 and the fact that the bull stock market is in its fifth year and devoid of a major question despite the advance, it would not be a surprise to see some selling.
