What will December's sell-off mean for US markets in 2019?

Affected by housing market

Stephen Jones, chief investment officer at Kames Capital

Stephen Jones, chief investment officer at Kames Capital

Last year saw the US equity market experience its worst Christmas Eve on record, the worst December since 1963 and, with the index down 9.2%, one of the poorest months since World War Two.

Scanning market commentary, blame is attributed to an expected sharp slowdown in the US (and by association) the world economy and/or President Trump's erratic behaviour. Looking at the economics, historically, gyrations in the US equity market have matched well with swings in corporate sentiment (captured in the ISM manufacturing sentiment survey). If that relationship still holds, then equity investors are telling us that a sharp slump in business optimism awaits us in 2019. US distributors to feel the pressure from Trump's trade tariffs from China The weakness projected is consi...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on US

Without accounting for food and fuel costs, prices jumped by 5.9% through July, matching the previous reading.

US inflation cools to 8.5% in July

Slowdown due to lower fuel prices

clock 10 August 2022 • 3 min read
Josh Mayne, Lowes Financial Management

Structured products in Q2: Positive returns in volatile market

Q2 2022 maturity results

Josh Mayne
clock 09 August 2022 • 2 min read
Ritu Vohora, T. Rowe Price

Ritu Vohora: Bear market rally or a bullish inflection?

Pain for equities

Ritu Vohora
clock 08 August 2022 • 5 min read