Almost as fast as we published our 2nd July video update, major stock indices across the globe suffered declines. Three U.S. indices are now in a “correction”: the Russell Mid-Cap, Russell Small-Cap and the NASDAQ index have declined -10% from their mid-July peak. The S&P 500 is down 8.5% from its July peak. Naturally, investors are on edge as stock indices gyrate +/- 2% or more on a daily basis.
We are watchful but believe that this is the “chop” that we have expected to occur in the summer months leading up to a Presidential election. We believe that the markets are “churning not burning” as markets trade below their recent highs in a sideways channel heading into the election.
- The 2nd article attached at the bottom of this post is a precise commentary from Clark Capital that shares a similar point-of-view that the current correction is just that – a correction within a continued economic and market expansion.
So without further ado, here is our summary of Forbes’ 8/5/2024 article by Will Daniel entitled “The 5 Reasons for Monday’s Global stock market rout”. His first 2 “reasons” are what started the market sell-off in mid-July and the 3 remaining reasons are what has accelerated the sell-off in the past few days.
