Furthermore, REITs often outperform other
stocks in a slow economy.
Not exact matches
It's hard to verify independently the claims of retail traders who say they have made good money this year, when worries about a
slowing Chinese
economy and the slumping oil price have wiped up to $ 8 trillion from world
stock markets
in January alone.
If labor and indeed government must demand some recompense for the four decade's long downward tilting teeter - totter of wealth creation, and if GDP growth itself is
slowing significantly due to deleveraging
in a New Normal
economy, then how can
stocks appreciate at 6.6 % real?
China — the world's second - largest
economy — grew at its
slowest annual pace
in approximately a quarter - century
in 2015, with China's
stock market volatility spiking, and the renminbi sharply depreciating versus the U.S. dollar.
The Chinese
economy is
slowing (worryingly, opinion differs as to how much), maintaining downward pressure on commodity prices, while Chinese
stock prices continued to tumble
in August
in spite of huge intervention by the authorities.
As
stock prices have collapsed and wiped out a portion of the savings of the average Chinese investor, this could undermine confidence
in China's capital markets and also the ability of the Communist Party
in China to maintain control of the
economy and engineer a «glide path» for
slower but more sustainable growth.
While the sudden moves
in the Chinese currency — and the concurrent concern about a
slower economy — are the main cause of China's
stock market volatility, the country's
stock market structure may itself be exacerbating the selloff.
China's
stock rally has come as a sharp contrast to the nation's
slowing economy and is all the more precarious because it has been driven by unprecedented levels of margin financing, or investors» taking on debt to trade
in shares.
The eighth sure thing was that, with non-U.S. developed market and emerging market
economies generally growing at a
slower pace than the U.S.
economy (and with many emerging markets hurt by weak commodity prices,
slower growth
in China's
economy, the Fed tightening monetary policy and a rising dollar), international developed market
stocks would underperform U.S.
stocks in 2017.
So if you have one kind of growth — booming financial fortunes
in the
stock market, higher real - estate prices and more expensive means of living — then you are going to have
slower growth
in the real
economy because money is diverted from peoples» pay - checks away from buying goods and services to just having to pay the banks.
Mr. Fuleihan said
in the email, «We are preparing this year's executive budget
in the midst of economic and fiscal uncertainty,» citing volatile
stock markets and
slowing economies around the world.
The
stock market is plummeting today because of concerns about the global
economy, including the European debt crisis and the
slowing growth rate
in China.
Stocks have been posting new records despite investor concerns about
slowing U.S. corporate profit growth, persistent sluggishness
in the
economy and Greek bailout negotiations — to name just a few of the headwinds facing equities today.
Gyrating
stock values, slumping oil prices, turmoil
in foreign currency markets, predictions of
slow growth or even deflation abroad... Suddenly, the outlook for the global
economy and financial markets looks far different — and much dicier — than just a few months ago.
They've coined the term new normal to represent the
slow - growth
economy — and diminished
stock returns — that they believe investors can expect
in the future.
With concerns about the
slowing economy in Europe, so - called «cyclical
stocks,» which do well when the
economy is strong and slip when the
economy weakens, could be the most affected.
While the country has seen 68 months of
slow but steady growth and years of
stock market advances, he worries that
stocks are overdue for a correction, especially with trouble brewing
in the European
economy.