Monday 3 September 2018

After stock market rally in August, US face "very real" risk of slowdown

The US stock market saw its best August performance since 2014 last month, with the Dow Jones Industrial Average gaining 2.1 percent and the S&P 500 gaining 3 percent.

However, Economic Cycle Research Institute co-founder Lakshman Achuthan that a looming slowdown could cause a stock market sell-off.

"The slowdown is, I think, very real and will become more apparent in the coming months," he said. He added that during such slowdowns, "the risk, more often than not, is that you're going to see some sort of correction in the order of 10 to 20 percent".

Meanwhile, Mark Eibel, director of client investment strategies at Russell Investments, thinks that it is time to look outside the US.

"We just think it gets harder and harder from here in the U.S.," he said. "We like Europe, we like Japan," he added.

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