We have not seen such dramatic swings since the depths of the Global Financial Crisis in 2008. Investors are worried about two things: the prospects for global growth, especially in the US, and the continuing government debt crisis in Europe. Every piece of news or data is being scrutinised and a lot of the time investors overreact pushing sharemarkets sharply lower. We then see a rebound, sometimes just as sharp, once investors get greater certainty about the meaning of new information for their portfolios.
What is happening in the sharemarket?
While volatility in sharemarkets is not unusual, investors are only too aware that there has been a lot going on in the markets recently. Sharemarkets around the world continue to be very volatile.
Tagged under