Volatility in China
China’s Stock
market crash over the past week has resulted in our market being down from
17425 (Dec 31 2015 close) to 16514 (January 7 2016 close) as well. A drop of
almost 5%.
Just last year
this same event happened in August of 2015. The China Market dropped 11% in one
week. Our stock market followed suit, but we rebounded to erase those losses by
the end of the year.
The stock market
in our global economy will have much more volatility as the global economies
face hurdles. Last year we had the Greek and European debt crises. For the
first time in history a country missed a payment to the IMF. There was the
previously mentioned Chinese crash.
All of the turmoil
in 2015 was able to keep interest rates in the mid 3% to low 4% range for the
entire year. These events will likely keep the pressure on the Federal Reserve
to have a more cautioned outlook for 2016.
-Kris
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