With third-quarter earnings about to take the center stage, a rosy second half of 2015 as well as continued momentum in 2016 seem to be far-fetched notions.
Stock market volatility continues unabated and the overall picture is gloomy under the collective effect of the strong U.S. dollar, weakness in the energy sector and the bleak global growth backdrop.
Indeed, adverse economic conditions around the globe, heightened market volatility and low inflation were the reasons behind Federal Reserve’s decision against the interest rate hike in the near term from its current near-zero level. This decision comes as a surprise at a moment when the steady decline in the U.S. unemployment rate and a marked increase in domestic spending were paving way for a Fed rate hike.
Though the Fed’s announcement has put speculations to rest for now, was the decision a wise one? Only time will tell.
Meanwhile, the recent slump in the Chinese economy has disturbed the equilibrium of global markets with all major indices taking a beating. Notably, the S&P 500 and Dow Jones Industrial Average have declined about 8.5% and 10%, respectively, year to date. The loss of momentum in the Eurozone economy has added to the woes.
What’s Best for the Investors?
Stock markets as tumultuous as this take a toll on investors. Nevertheless, rather than fretting, investors should focus on reshuffling their portfolios instead.
With the stock market being in a correction mode, now’s the time to look for the best value bargains as they hold much promise. This is because, disorderly periods like this provide some of the finest buying opportunities and investors could capitalize from market corrections and beaten-down markets to procure quality value stocks at economical rates.
Additionally, if the selected stocks show trends of earnings growth ahead, that’s more than you can possibly ask for at this juncture.
4 Stocks to Put Your Money Into
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