In: Economics
The decline of share listings in the United States has led to considerable debate over whether these trends represent a fundamental global business shift away from the publicly traded corporate form, or something that is more U.S.-centric combined with the economic times. Develop an argument to why the decline happened.
The speed at which indexes fell in US has surprised investors .It is more US centric combined with the economic times at present It is the fastest decline since the 2008 financial crisis.The reasons that the market is falling are -Covid 19 affects confidence.The investors are apprehensive how the virus will affect the economy.Investors dont know how long this uncertainty will continue and it is not certain to what degree this will hurt corporate earnings.Secondly the uncertainty about the US 2020 election outcome is also affecting share market.Thirdly Government bonds yields have started falling as investors are seeking havens which is increasing bond prices in the midst of doubt that whether there will be global economic growth due to the corona virus outbreak.Fourthly recession fears is also responsible as bond investors are scared that there wil be global economic slow down due to the coronavirus which will bring recession .