The psychology of money and why we make the choices we do.
The stock market has gotten off to a wobbly start in 2016. If this “correction” feels familiar to the one in August of last year, it is because the same reasons are still in play: the economic slowdown in China, fear of Fed rate increases, and the rapid decline in oil prices. World Economic Growth While economic growth in the U.S. remains fair to good, economies in other parts of the world are not doing so well. China, the world’s second largest economy, had been a strong engine of growth. It is now slowing dramatically. Europe is still struggling in the aftermath of the economic meltdown of 2008. Japan is also lagging. Emerging markets have suffered as the threat of Fed interest rate increases spurred investors to look for less risky places to put their money. The U.S. economy does not exist in a vacuum. Weakness in the rest of the world threatens to lead us toward recession.