It seems that in honor of Halloween we see the stock market get scary.
The economy is doing fairly well but there are what is often called headwinds which might easily impact the future and the market is forward looking not concerned about the past.
We have the rising interest rates which will increase the cost of capital and the cost of carrying our national debt. To some extent it also simply provides a safer place to put money with a better return for nervous investors.
You have the trade issues which are increasing the cost of goods and services and likely decreasing actual sales based on supply and demand.
If you add the prevailing idea that we are overdue for a correction or a recession, you have a pretty nervous market, in fact it always is to some extent.
Market movements gain momentum as the people who don't sell or buy at first look for ways to join in
Did something particularly bad happen to the economy?
Not really but we haven't had a recession in quite a while and with mid-terms about to happen we may simply be due.
Probably a good time to avoid risk until this comes to an end.
It might go on quite a while.
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