It seems that the ghosts and goblins may be overstaying their welcome. Last week, investors cheered the new month and the results of the midterm elections, pushing back a terrible October. However, at the tail end of last week and throughout this week’s trading sessions, many of the same issues that plagued the market last month came back with a vengeance.
Investors spent much of the week fretting about slowing growth across the globe and trade issues. Meanwhile, Britain’s BREXIT and other geopolitical issues have still been persisting. With that, investors sold stocks hard most of the week.
This downward outlook was met with relatively positive data here at home. Various measures of industrial, consumer and inflationary activity showed some decent increases. However, the positive data was met with the idea that the Fed would be raising rates next month and that sent stocks reeling.
Add in a mixed earnings picture full of cautious guidance numbers and it was easy to see how stocks once again began their descent lower. All in all, the week was met with more volatility and many analysts have begun to postulate that the bear market has officially started.
Be sure to check out our previous week’s Wrap here, when the investors brushed off the poor October results.