Hitting the Wall

Market uncertainty through the start of 2016

In December 2015, market uncertainty was reaching a crescendo. Low crude oil prices, slowing economic growth in China and further destabilization in the Middle East had investors very concerned. The Dow Jones Industrial Average (DJIA) Index responded by dropping more than 1,000 points during the first week of trading, the worst start to a new year, ever. Headlines such as “Stocks Sink as Investors Seek Safety,” “Treasury Yields Plummet,” “Gold Soars,” “Economists Lower Growth Estimates,” and “Why Low Rates Aren’t Enough” that appeared in January 2016 suggested investors had hit the wall in this investment cycle.

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