Friday, August 1, 2014

Why US Stock Prices May Have Sold Off Thursday

There are lots of problems that may have contributed to recent sell off in the stock market.  Many believe that a greater than expected rise in wages may be the culprit.  The Fed will end its zero interest policy sooner than expected if wages rise faster than its forecast.  Wage growth means that the market has become tighter and the risk of inflation becomes greater.  Higher interest rates are not good for credit markets which indirectly affect the stock market.

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