With markets breaking records from 2017, investors feel as if 2020 is the year for a long-sought after bull run.
However, the recent reports on Tuesday suggesting that further selling may occur this week has some investors a bit uneasy.
The current recession may be attributed to the geopolitical tensions between the United States and China, along with the ongoing pandemic. As stocks continue to decline, uncertainty and volatility for investors is, unfortunately, likely to persist.
Recent economic data has been less than favorable, as it pointed towards a US contraction of 33.3% for the April-June quarter.
Adding to this, the US Labor Department reported an unprecedented number of jobless claims for the week, suggesting that the unemployment rate is still rising.
Furthermore, the ongoing trade tensions between the US and China have only further exacerbated global uncertainty, as the US initiated tariffs on over $750 billion of Chinese products.
This might explain why top Wall street firms Bank of America, Goldman Sachs, and JPMorgan have all dropped their earnings forecasts for the second quarter of 2020.
In addition, tech companies such as Apple and Microsoft are also feeling the pinch from the negative market sentiment.
As such, it’s no wonder that the odds are currently favoring further selling this week.
Investors should keep a watchful eye on the markets at this time, and be wary of any big decisions they make. While it’s impossible to tell how much more selling this week can bring, it’s likely that volatility and market corrections are bound to happen.
It is important to remember that markets have proven to be resilient in the face of global uncertainty, and history teaches us that investors have always seen longer-term profits despite short-term losses.
With a balanced portfolio, diversification, and patience, investors can weather the storm and position themselves for gains in the near future.
With markets breaking records from 2017, investors feel as if 2020 is the year for a long-sought after bull run.
However, the recent reports on Tuesday suggesting that further selling may occur this week has some investors a bit uneasy.
The current recession may be attributed to the geopolitical tensions between the United States and China, along with the ongoing pandemic. As stocks continue to decline, uncertainty and volatility for investors is, unfortunately, likely to persist.
Recent economic data has been less than favorable, as it pointed towards a US contraction of 33.3% for the April-June quarter.
Adding to this, the US Labor Department reported an unprecedented number of jobless claims for the week, suggesting that the unemployment rate is still rising.
Furthermore, the ongoing trade tensions between the US and China have only further exacerbated global uncertainty, as the US initiated tariffs on over $750 billion of Chinese products.
This might explain why top Wall street firms Bank of America, Goldman Sachs, and JPMorgan have all dropped their earnings forecasts for the second quarter of 2020.
In addition, tech companies such as Apple and Microsoft are also feeling the pinch from the negative market sentiment.
As such, it’s no wonder that the odds are currently favoring further selling this week.
Investors should keep a watchful eye on the markets at this time, and be wary of any big decisions they make. While it’s impossible to tell how much more selling this week can bring, it’s likely that volatility and market corrections are bound to happen.
It is important to remember that markets have proven to be resilient in the face of global uncertainty, and history teaches us that investors have always seen longer-term profits despite short-term losses.
With a balanced portfolio, diversification, and patience, investors can weather the storm and position themselves for gains in the near future.
