jeudi 16 octobre 2014

Global economy - another recession/depression ?

Looks like major stock markets around the world have had a significant correction over the last few days. It is reported that this is due to jitters relating to:


  • Poor U.S. growth numbers

  • Bad E.U. economic data

  • The inability for the Chinese economy to transition from housing bubble growth to something more sustainable

  • Fears over hte Greek economy

  • The impact of Ebola on the world economy




IMO stock markets over react to both positive and negative news so I'd be tempted to think that there may not necessarily be much to it but the recent drop in commodity prices, especially oil, seems to back up the sentiment that economic growth is tailing off.



Are the goldbugs and harbingers of doom right and we should be selling everything and buying gold and guns ? Is this instead an opportunity for the canny investor to buy value stocks at a 10% discount ?



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