Market is Turning Bullish
By Richard Russell
In the Financial Times, the headline on page one reads: Equities See The Worst Quarter Since 2011 Over Fears For Global Economy.
US and global equities are heading for their worst quarterly performance since 2011, with investors rattled by China's economic slowdown, uncertainty over Federal Reserve policy and growing pessimism about corporate earnings.
Adding to investors' unease, the International Monetary Fund on Tuesday warned that corporate failures were likely to jump in the developing world, after a borrowing binge in the past decade.
With an array of sectors slumping since the start of July, beyond those directly influenced by the rout in commodity prices, the global equity bull run of recent years is now facing a major challenge.
The S&P has fallen 8.5%, the biggest decline since the third quarter of 2011. Previously high-flying sectors that led the market earlier this year, notably biotech and healthcare stocks, have fallen appreciably in recent weeks.
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