- Worries about the economy and a seemingly slow-footed response from the Fed, along with concerns over corporate earnings, dragged markets Monday.
- Put that against the backdrop of a stock market with high valuation, and it had all the makings of a sell-off waiting to happen.
- “It’s just a perfect storm of slowing growth, crowded positioning and risk-off sentiment that’s all coming to a head at the same time,” said John Belton, portfolio manager at Gabelli Funds.
Any number of suspects could be blamed for Monday’s market beatdown, ranging from worries about the economy and seemingly slow-footed response from the Federal Reserve to the unwind of a popular global currency trade and concerns over corporate earnings.
Those all played a part in some shape or form, and each helped tell a story of a shifting investing landscape that likely has not fully played out fully.
“This is very much a regime shift that is affecting sentiment in a big way,” said Robert Teeter, chief investment strategist at Silvercrest Asset Management. “The market got a little bit ahead of itself in that run-up that it’s had. Now we’re correcting back to where we were in April and May, and it’s been a violent correction because it’s been a very big wake-up call.”
www.cnbc.com/2024/08/05/here-are-all-the-reasons-why-mondays-major-market-wreck-is-happening.html
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