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Tag: markets

Shrinking public markets limit the playing field for Main Street investors

Shrinking public markets limit the playing field for Main Street investors

Finance
Today's public markets, which were first designed to fill the capital-raising needs of the 19th century, are out of step with capital formation in the 21st century. It's essential to move the markets forward to provide adequate access to investment opportunity for all, and not just a few, investors. Right now, the average investor has little or no access to where the real action is. Why is this happening? Because the public capital markets continue to shrink in the Western world. In the last 20 years, the U.S. stock market has undergone an alarming ch...
What's knocked US markets off course?

What's knocked US markets off course?

Business
Just a few months ago, US financial markets seemed headed for a third year in a row of hefty increases.But shares have tumbled since October, retreating to lower levels than at the start of the year. That decline continued on Friday, as weak economic data in Europe and China sparked a late afternoon sell-off, sending all three major US share indexes lower.The Nasdaq dropped almost 2.3%, the Dow fell 2% and the S&P 500 sank 1.9%.For those invested in US stocks, the double-digit gains in seven of the last 10 years may still feel pretty good.But as Wall Street debate turns to just when a recession might begin, many investors are bracing for a rough patch. What's behind the shift in sentiment?1. The tech boom was overblown.At the...
Markets drop as tech slowdown fears grow

Markets drop as tech slowdown fears grow

Business
A sell-off on Wall Street continued on Tuesday, amid steep declines in oil prices and losses among technology shares.The Dow Jones Industrial Average closed down 2.2%, weighed down by Apple, which plunged nearly 5%.The broader S&P 500 dropped 1.8%, while the tech-heavy Nasdaq index fell 1.7%, to its lowest level since February.Meanwhile, benchmark oil prices sank nearly 7%, close to one-year lows. Apec: A family feud with no end in sight A quick guide to the US-China trade war Connor Campbell at Spreadex described the sell-off as a "macro-car crash, with Brexit fears, the post-Apec pre-G20 US-China trade war flare-up and the continuation of a nasty US tech sell-off resulting in absolute carnage".But IHS Markit's chief economi...
Investors steering clear of emerging markets bonds due to currency volatility

Investors steering clear of emerging markets bonds due to currency volatility

Finance
Mark McCarron, chief investment officer for Wescott Financial Advisory Group, believes in global diversification when it comes to investing in stocks. But not when it comes to bonds. The reason: currency risk. "Our fixed income exposure is almost exclusively in U.S. dollars," said McCarron, whose firm manages more than $ 2 billion in assets. "Currencies are volatile and they represent a much bigger part of bond returns than stock returns. "Investors can get wiped out investing in global fixed income if they do it un-hedged," he added. This year may no...
FTSE hits seven-month low as world markets suffer

FTSE hits seven-month low as world markets suffer

Business
Markets around the world have taken a hit, with poor performances in Asia overnight affecting markets in Europe and the US. Britain's FTSE 100 was down 1.24% to a seven-month low, while all three main US markets were down - the industrial Dow Jones by 1.45%, the broad-based S&P by 1.64% and the tech-rich Nasdaq by just over 2% - although the US markets staged a recovery as they headed towards close.Sky's business presenter Ian King blamed the falls on a "whole combination of factors".He said: "The big long-term factor is that the US Federal Reserve is starting to raise interest rates again and that requires investors to have a complete repricing of risk across the piece - taking some money out of one asset class and putting it in another."Other factors included Saudi Arabia...