With news on China’s economic woes dominating headlines and the S&P 500 standing on shaky ground of late, a growing number of market investors seem to be losing confidence in the six-year-old bull market.
Recent U.S. economic data has been encouraging enough to drive the Federal Reserve to seriously consider beginning a new tightening cycle as soon as this month. That certainly seems like good news when it comes to the U.S. economy. However, just this week, Citigroup released a report in which they stated that they see a 55% chance of a global recession sometime in the next couple of years.
Market uncertainty
It’s a confusing time for investors and there are now many unanswered questions about the economy. With the S&P 500 sitting near all-time highs, how much higher can it go? Is China merely hitting a bump in the road, or will its debt drag down its growth for the next decade or more? Will commodity prices rebound? When and by how much will the Fed raise interest rates?
For those of you that are hoping that the rest of this article will include clear and actionable answers to each of these questions, I’ve got some bad news: I don’t have the answers. While many people have reasonable opinions about the answers to these questions, nobody really knows where the market is headed from here.
Volatility
The most glaring evidence of this recent uncertainty is…
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