Sunday, September 11, 2016

The Bull Is Still Running. So Why Are Investors Tiptoeing?

The current Bull market (going on seven years) in the United States continues to progress, in that prices are rising, but all while this is happening investors are being hesitant when it comes to where to invest.  The market has been trending to support emerging industries and small-company stocks as of late because prices across the board have been continuing to rise.  This is happening because a lot of emerging industries and small-company stocks benefit from the raise in prices due to not being involved with foreign buyers that would adversely effect their position.  This situation is causing investors to feel hesitant with buying stock in traditional big name, "blue-chip" stocks and encourages them to invest in riskier small-company stocks.  A lot of this macro-economic activity can be mapped to the importance of keeping interest rates low.  This current market position proves the overall importance and effect that interest rates can have on the economy as a whole.

I gained this insight from Paul J. Lim at the New York Times from his article titled "The Bull Is Still Running. So Why Are Investors Tiptoeing?"

http://www.nytimes.com/2016/09/11/your-money/the-bull-is-still-running-so-why-are-investors-tiptoeing.html?ref=business&_r=0

1 comment:

  1. It is interesting to know one of the reasons for investors not to invest in big multinational companies is that since the economy is growing faster in the US than most of the other countries, it affects the sales for this companies since it makes their product more expensive. It would be interesting how this lack of investing could affect this companies, and also it would be interesting to know if this companies are going to try to sell more locally so they don't have to export as much and that could fix this problem.

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