U.S. stock exchange traded funds were volatile Monday after four losing weeks as equities can’t seem to escape a long inventory of concerns, including the Eurozone debt crisis and weaker economic data.
According to Roya Wolverson at The Curious Capitalist, the threats include a bank run in Europe, potential dissolution of the euro currency, slowing growth in the emerging markets and a double-dip recession in the U.S.
In Europe, little has been done to calm frayed nerves. So far, Germany and France have rejected issuing “Eurobonds,” or funding a larger bailout pot to avoid future problems. [Gold ETFs Rise]
On the economic front, due to lower consumption in the developed countries, emerging markets like China are projecting drops in their manufacturing and exporting industries. With more large U.S. companies generating a larger slice of their revenue from emerging markets, a slowdown overseas would pressure U.S. stocks back home, as well. [China ETFs Fall on Lower Growth Outlook]
On Aug. 26, Ben Bernanke will give his annual Jackson Hole speech on the state of the economy. While some are hoping for another quantitative easing plan, politicians have accused the Fed of running with the money presses. However, without another helping hand from the Fed, investors may be loathe to invest in riskier assets like stocks. [Will Bernanke’s Jackson Hole Speech Save Stock ETFs?]
SPDR Dow Jones Industrial Average
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.