A Bear Market That Might Bear Some Fruit

A Bear Market That Might Bear Some Fruit

U.S. Stocks have fallen nearly 4.0 percent so far in 2016 and it may get worse before it gets better.

The sluggish start “doesn’t necessarily point to a year of losses.” “January often is a bad month for stocks and all of the most recent selling has beaten down some shares low enough to interest selective investors.”

The average stock in the S&P 500 is off almost 21.3 percent from its 52-week high. The lows seen in August 2015 were partly triggered by worries over a slowdown in China’s economic growth, and “this remains a concern as reflected in a further slide in the Chinese yuan on Thursday.”

“There are other geopolitical factors that have affected the markets; tension between oil producers Saudi Arabia and Iran and a nuclear bomb test by North Korea.”

“The recent declines in U.S stock prices also raised concerns that a weak January could result in a down year for stocks, “but there is scant evidence for that idea.” Although the markets have gotten off to a rocky start, it is not time to give up on them yet.

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