They’re investors. They’re allowed to change their minds. Just a few weeks ago, on September 17, the Federal Reserve Open Market Committee (FOMC) decided to leave the fed funds rate unchanged. In part, this was because, “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure […]
Well, third quarter was a humdinger. It began with the first International Monetary Fund (IMF) default by a developed country (Greece) and finished with Hurricane Joaquin possibly headed toward the east coast. In between, China’s stock market tumbled, the Federal Reserve tried to interpret conflicting signals, and trade growth slowed globally. After such a stressful […]
Oh, the uncertainty! Investors are keeping one eye on the Federal Reserve and the other on politicians trying to determine what may happen during the last quarter of the year. The Fed, which is the central bank of the United States, is responsible for conducting monetary policy with an eye toward full employment and stable […]
As Tom Petty often sang, “The waiting is the hardest part.” Whether it’s waiting for college acceptance letters, medical test results, employment offers, or Federal Reserve monetary policy changes, waiting can produce a lot of anxiety. A 2012 research paper written by Associate Professor Kate Sweeney and Graduate Fellow Sara Andrews of the University of […]
The market is as streaky as a slice of bacon. U.S. stock markets have been sliding higher. They’ve been sliding lower. Barron’s reported the Standard & Poor’s 500 Index has tumbled from gains to losses and back again for 10 weeks in a row. The Dow Jones Industrial Index has tagged along with nine weeks […]
The Markets Who’s the culprit? Speculating on who or what is to blame for recent market weakness is a popular pastime right now. Last week, Barron’s said the search for someone to blame is a lot like a game of Clue. So far, the most common conclusions are “the People's Bank of China with a […]
U.S. stock markets finished last week higher than they started it, but the five-day ride was awfully bumpy. Concerns about China’s slowing growth, shifting currency valuations, and falling stock markets, coupled with uncertainty about the Federal Reserve’s next monetary policy move, contributed to malaise in world markets early last week. After falling by about 6 […]
Correction! The Dow Jones Industrial Average lost about 6 percent last week. That puts the benchmark index about 10 percent below its record high on May 19, 2015, according to Barron’s. A drop of that magnitude from a new high may be a correction – a brief but jarring drop in value that often causes […]
Stock markets in the United States got off to a good start last week, heading higher before stumbling over China’s currency news. China, which has one of the world’s largest and fastest growing economies, is experiencing a slowdown in economic growth. The Economist reported data released last week showed, “…an 8 percent fall in Chinese […]