Market insights and articles we found interestingEvery day at Clayline Wealth we read news and articles from a wide range of sources. Below are some of the highlights that we think might help you in your financial choices. If you have any questions about the content in them, please contact us, we are happy to help.
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The momentum that drove 2019’s powerful equity market rally came to a halt in January, although many major stock indices did reach record highs during the month. The year got off to a rocky start as tensions between the U.S. and Iran escalated after a U.S. airstrike killed a top Iranian general.
The final week of February saw global equity markets experience a thrashing not seen since the financial crisis of 2008. Fears over COVID-19, a form of coronavirus, reached a fever pitch as panic overtook financial markets. Since the first indications of the virus were detected in central China in December, over 60 countries have reported cases of the illness, with the World Health Organization declaring the outbreak a public health emergency of international concern. After reaching record highs the week prior, the S&P/TSX Composite Index and the S&P 500 Index plunged 8.9% and 11.5%, respectively, in local currency terms, during February’s final week.
What a difference a year makes. Coming off of the worst year for stocks since the financial crisis, 2019 saw equity markets bounce back around the globe in a big way. Despite some challenges coming into the year, including slowing global growth, central bank missteps and the escalation of the U.S.-China trade war, 2019 produced double-digit returns for most major equity markets, not to mention very healthy returns for broader fixed income benchmarks.