What Caused the October Stock Market Decline?
One thing that’s always kind of freaked me out is how quickly things can turn on a dime. I know, that’s the way life goes sometimes, but it still can feel a bit unnerving. And evidently, I’m not alone, at least if this past month is any indication.
Prior to this past October, the economic data hitting the news read like an investor’s dream. The US economy was booming, wage growth was picking up steam, inflation was contained, and American stocks were on track for another year of double-digit returns.
Most economies outside of the US were also doing very well—in fact, every single major economy was displaying expansionary tendencies. It’s not often that synchronous growth occurs around the globe, but everyone seemed to be playing their part and marching ahead. Life was good.
Then, October came through like a wrecking ball. Everyone got spooked—weeks before the actual ghouls and goblins came out to play, and in turn, stocks took a dive. Things were going so well prior to this, so what happened?Read more