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The Stock Market Decline
Some economists blame the negative market news on the severe winter weather. There has already been an apparent economic slowdown in China. The Hang Seng Index declined 2.9 percent in Hong Kong. February is looking an awful lot like January did for investors. And there is an emphasis on awful, reports CNN Money. During the first month of the year the Dow tumbled more than 5% which is the worst decline the market has seen since January 2009. According to CNN News, Many experts have expressed the view that the market could fall even further, following big gains in 2013. Some consider the fact that the stocks have not taken a big breather in a while, so maybe its time for a mean reversal.
The largest maker of personal computers, Lenovo Group Ltd., dragged the Hong Kong’s equity benchmark down 11 percent sinking the lowest in five years with a decline from the company’s December peak, according to Bloomberg News. According to JPMorgan Chase & Co., The premium investors demand to own emerging-market debt over U.S. Treasuries fell eight basis points. CNN Money’s Tech 30 index was down as well. Many experts think the market could also fall further.
Kristina Hooper, an investment strategist at Allianz Global Investors said that she thinks investors shouldn’t be scared by the market sell-off. “Rather, they should embrace the opportunities it creates.” Investors are still recovering from disappointing earnings from a rough January. “We see bad numbers from emerging economies all over the world,” said Timothy Ghriskey, chief investment officer at Solari Group LLC in New York.
At a time when the Federal Reserve is cutting stimulus, Bloomberg News reports that around $2.9 trillion has been erased from equities worldwide this year after manufacturing gauges in the U.S. and in China, the world’s two biggest economies, showed a slowdown. For employment at Bloomberg, click here.
Image Credit: The Epoch TimesThe Stock Market Decline by Jaan