Tag Archive: stock market volatility

Lower Rates Are on the Way

It’s no secret that the U.S. and global economies have hit some major bumps in the road in recent months. The ongoing U.S./China trade war is having a measurable impact on the economies of both nations, and thus far the war on trade appears set to continue for some time. The U.S. also last week announced a five percent tariff on Mexican goods to begin June 10th. Those tariffs are set to increase until Mexico takes action to stop the flow of illegal immigrants along... Continue Reading

A Prime Example- Volatility Spike

Over the weekend: President Trump alluded to a breakdown in ongoing U.S./China trade negotiations. The U.S. is now set to impose further tariffs on $200 billion of Chinese goods, taking the current rate of 10 percent up to 25 percent. Talks were scheduled to continue this week in Washington, although it is now unclear if scheduled meetings will take place. Markets are on edge over the news, as stocks had seemingly priced in a deal being done in the coming weeks. Volatility Spike: Today, the... Continue Reading

What if Stocks Declined by 50% or More?

Recent stock market volatility and declines could be a taste of things to come. The market has been moving higher for a decade now on the back of ultra-low rates and easy money. That era is coming to an end, however, and stocks could be in for quite the shock as monetary policy tightens. The ultra-low rate policies of central banks have allowed corporations to invest, expand and hire. As the cost of capital increases, however, these wheels are likely to grind to a halt.... Continue Reading

What is Oil Telling the Markets?

The last several weeks have seen renewed stock market volatility as investors contend with the ongoing trade war with China, rising rates and the highly anticipated midterm elections. The elections have now come and gone, however, the other factors remain a source of concern for investors. With so many potential distractions, it is easy to see why recent price action in the oil market has not gotten too much attention. Although the market’s recent slide has been mentioned here or there, the recent declines could... Continue Reading

The Fed May be the Biggest Risk to the Stock Market

The stock market has a number of issues to contend with currently if it is to keep moving higher and continue the bull market that began nearly a decade ago. Geopolitical risks-including a potential trade war and even armed conflicts in more than one location-are weighing on market sentiment. Of all of the current risks the stock market may face, however, the biggest potential threat to the equities market could be the Fed. The central bank has already begun to take steps to normalize monetary... Continue Reading

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