In: Finance
Discuss what has been happening to the financial markets over the past 6 to 9 months.
The following have occurred in the financial markets | |||||||||
during the last 9 months. | |||||||||
1) The DJIA(dow jones industrial average), and the S&P 500 indices | |||||||||
have been on a downward trend during the last six months of 2018. | |||||||||
However, the stock markets have recovered in the first three months | |||||||||
of 2019. | |||||||||
2) The stock market gave negative returns in the last 6 months of 2018 because of the following: | |||||||||
a) there are signs of a global economic slowdown. | |||||||||
b) there are concerns about monetary policy. | |||||||||
c) there is political instability under Trump and inflation fears. | |||||||||
d)there is increased regulation of the technology sector. | |||||||||
3) The upward trend in 2019 was due to positive developments in the | |||||||||
United States (U.S) and China trade talks. In addition, the U.S economy has been | |||||||||
performing well under the Trump administration. The U.S companies have reported | |||||||||
good earnings in the last 9 months. |