Analysts fear that poor stock performance in the beginning of the year will set the tone for the coming months. Now there is no certainty in how the situation will develop, according to Bloomberg.
MOSCOW, 30 APR –. January 2016 was the worst month for the stock exchanges for the last seven years, despite the fact that in the last week of the month, the situation has begun to stabilize, according to Bloomberg.
Loss Standard & Poor’s 500 was 5.1% for the month – this is the worst result since 2009, when the index lost 8.6%. The lowest Standard & Poor’s were 20 of January when the index fell to the lowest level in 21 months. The minimum index were 12.7% below the may highs.
Since 1927 February was crucial for exchanges for the next 11 months in 68% of cases. Analysts are worried that the “weak month will be a harbinger of a weak 2016”. So, in 2008, the decrease of the index by 6.1% in January over 34 percent dip in December, according to the article.
“The question is, when does it all (drop – approx. ed.) in January or is it a harbinger of doom. I don’t know whether I have a clear answer,” Bloomberg cites strategist Wells Fargo Securities LLC Gina Martin Adams.