Falling stocks indicate worsening global economy
Robert Burgess | 04 Oct 2019 00:30
The global stock market fell for a second straight day on Oct 2, posting its biggest back-to-back loss since early August. Why this is happening is well known: The outlook for the worldwide economy is get- ting worse.
But what’s really worrisome is that suddenly the declines are being led by US equities. The MSCI USA Index tumbled 2.98% at the start of the week compared with a drop of 1.45% for MSCI’s index tracking equities outside America.
As a result, US equities have now underperformed their global counterparts since August after trouncing them in the first eight months of the year.
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