statisticians: But the pessimists have a point, even if they sometimes overstate the January magic, according to The Guardian. According to statisticians at Reuters, this year started with Wall Street biggest first-week fall in more than a century, and the 8% monthly decline in the MSCI world index made January performance worse than 96% of the months on record. Although the data on investment returns in the United States actually show that January profits have historically been on only slightly better than the monthly norm, the widespread belief in a bullish January effect has made the weakness of stock markets around the world this year all the more shocking. So, just how worried about the world economy should we be Three fears now seem to be influencing market psychology: China, oil and the fear of a US or global recession. We saw this in the first four days of the year, when the sudden fall in the Chinese stock market triggered January global financial mayhem. China is surely a big enough problem to throw the world economy and equity markets off the rails for the rest of this decade.
(news.financializer.com). As
reported in the news.
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