Wall Street can’t escape this landmine

Sean BowerLately I’ve been reminded about when I was first starting to drive. I can distinctly recall one particular instance when I began driving down the street while I still had the emergency brake on…slowly.

I bring this up because it feels like a similar situation for the stock market right now.

This is the “landmine” that the market can’t escape, and how it’s creating an emergency brake that’s been impeding the market’s recovery…

Just in case you’ve never made the same silly mistake as me by driving with the e-brake on, let me explain how it feels: You start pushing down on the pedal to speed up, but the vehicle feels like it’s trudging through tons of mud. You continue to try to pick up speed, yet you can never really get going faster than a few miles per hour.

Doesn’t it feel like Wall Street left the emergency brake on?

After a few relatively big up days, the market has found it difficult to make much headway over the past few days despite the fact that it seemed eager to climb.

So what’s slowing the market?

China.

Declining Chinese export data is yet another big signal that China’s economy is slowing.

That’s caused markets in Asia and Europe to dip, which, in turn, has had an affect on the U.S. stock market.

Investors all over have clearly shown some concern about the global economy, something I certainly don’t blame them for. The big question is how much outside factors will weigh on Wall Street.

Now, as recent data has added more fuel to the fire in terms of China potentially missing expectations on growth data for the 3rd quarter, which is set to be released next week.

If those results are “unhealthy”, we may see the stock market take off the emergency brake, but shift into reverse.

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