The U.S. stock
market is plummeting on China’s growth concerns. There are factors in play
other than China also, think overpriced earnings. S&P 500 seems overpriced,
and technical indicators show no sign of reversal just yet. The stock market
has been in a rut for past few weeks now; it's getting a harder hit today as
NASDAQ composite is down 2.5% and S&P 500 is down around 2.3%. The blame of
the recent bearish market fell on China's slowing growth, crowded emerging
markets and FED's plan to raise interest rates. However, interest rates are on
their historical lows; unemployment stays at the ground and corporate profit
margin are touching the roof. China, alone, can't be blamed for the sell-off.
Sure, the slump in the Chinese market acted as a trigger for the global
downward trend. But, this is not the only reason for the current market
decline.
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