The market had another horrible week. How Bad? Let’s count the ways. The Russell 2000 is down 12.5% in October; the Nasdaq Composite is down 10.9%; the S&P 500 is down 8.8%; and the Dow Jones Industrial Average is down 6.7%. Investors and traders are worried about forward growth.
Here is a list of concerns that I have read about over this past week and month.
- Strong Dollar
- Slowdown in China
- Tarrifs
- Raw material price increase
- Politics
- Consumer inflation
- Interest rates rising
- Profits margins
I beliee this market is caught up in a correction driven by earnings growth concerns. However, FactSet indicates, the blended third quarter earnings growth rate is 22.5%, up from 19.3% on September 30. What’s more is that the forward 12-month EPS estimate has increased by 0.8% over the same period.
Global Spotlight
Gearing up for a Global Arms Race. China’s growing military might, Russia’s continued treaty violations and the rise of arms control skeptics like U.S. national security adviser John Bolton are driving an arms race among the great powers.
Bracing for a Bolsonaro Presidency. Brazilian presidential frontrunner Jair Bolsonaro looks set to secure a final electoral victory on Oct. 28 against socialist challenger Fernando Haddad.
Abe’s Balancing Act on Display. While finding channels to cooperate with Beijing, Japan is deepening strategic ties with other key powers to counterbalance its longtime adversary.
Pakistan’s Begging Tour Continues. Pakistani Prime Minister Imran Khan reaped a big reward from Saudi Arabia when the kingdom offered him a $6 billion debt relief package to ease Islamabad’s debt burden.
What Can Turkey Get out of the Saudi Crisis? Turkish President Recep Tayyip Erdogan walked a fine line this week, stopping short of formally accusing Crown Prince Mohammed bin Salman of ordering the murder of Saudi journalist and dissident Jamal Khashoggi but, nevertheless, forcing Riyadh to once again shift its narrative and admit to a “premeditated” action.
Stratfor.com
Economic Calendar
Here isa a list of the U.S. economic events happening this week.
Briefing.com
Review Last weeks numbers here.
