Recently had a pretty strong buzz in the media and economic speeches known economists over the United States stock market. Against the background of geopolitical events in the world attention from the stock market a few distracted, but the question remains: how long will grow the stock market and how this will end? Yet shares are growing steadily, but the cloud is already visible on the horizon stock American paradise.
The fact that more than 47% of the shares, which are part of a well-known and significant index of Nasdaq, has lost about 20% of the maximum values that occurred over the last year. A similar situation is observed in the indices and the Russell 2000 Index Bloomberg IPO, according to which about 40% of the securities went down by 20% too. It is rather strange contrast with the S & P500, the dynamics of which conquers new highs. According to him, only 6% of the shares of companies are in “bear” zone.
There is a new trend in which investors try to avoid those assets that could be affected the most. The stock market situation is alarming, because the last drawdown of 10% was 3 years ago, and the new is not planned, but also increases its probability. Economists and stock market participants agreed that the group most at risk are small-cap companies that are rapidly rushed to the skies.