Posted 52 days ago
Global stock markets are expected to continue hemorrhaging money as more heavy selling continues this summer while central banks around the world hike interest rates to try and combat spiraling inflation.
Brunello Rosa, the CEO and head of research at the financial consultant firm Rosa & Roubini, believes that central banks around the world are going to continue monetary tightening while markets continue to spiral downward, CNBC reported.
Rosa said, “Now it’s time for a reappreciation of the economic fundamentals around the world in terms of growth. It’s hard for markets to be totally optimistic when inflation is going up, growth is going down, and interest rates are rising fast across the globe.”
This past Thursday, the Dow Jones Industrial Average plunged more than 1,000 points while the Nasdaq Composite fell nearly 5%. This 5% decrease erased all the gains from a short-lived rally the day before when the U. S. Federal Reserve announced that it would be raising interest rates. The short-lived rally was spurred on by investor optimism that the Federal Reserve hadn’t implemented a larger rate hike, but this optimism quickly gave way to fears of subsequent smaller rate hikes throughout the coming months.
Rosa suggested that investors initially... (Read more)