Some thoughts on the recent market selloff
As I write these words, the Dow Jones Industrial Average is up nearly 400 points, about 1.85%. The Nasdaq is up even more. Does that mean the market rout is over? No. But, for me, it does suggest a lot of the downdraft was caused by automated selling, with algorithms amplifying volatility.
Nothing in the real economy suggests we are near a recession. It's not even clear the economy is slowing. Initial jobless claims, the weekly data set I watch, showed the 4-week moving average was 211,750, unchanged from the previous week's unrevised average of 211,750.
It is noteworthy, however, how much more different indices have lost than the US due to market jitters.
Equity ETFs, % Below 52-Week High...
China $MCHI: -32%
Africa $AFK: -26%
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.