Bear market
Article Abstract:
The US stock market could be hit by the effects of the Asian financial crisis, which could also undermine European stock prices, according to Morgan Stanley's Barton Biggs. A Japanese recession could lead to more currency devaluations in Asia, including China and Hong Kong. This could hit corporate earnings for US and European companies faced with cheap imports and wage pressure. Stock prices could fall as earnings drop. Hard currency assets and long government securities are favored in this climate. Looser fiscal and monetary policy could help but is not likely until the impact of the crisis has been felt.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Record breaker
Article Abstract:
US 30-year bond yields could drop to record levels, but US stock prices may not follow to reach new highs. Non-farm employment dropped in Mar 1998, the first drop that has occurred since May 1995. This could reflect lower hiring levels in the construction industry due to cold weather, and consumers see job openings as plentiful. Corporate earnings growth has undergone a sharp slowdown, and this could continue. There may be pressure on margins from higher wage costs, and well as from slower sales growth. Hourly wages are rising by more than the rate of inflation.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Unreasonable?
Article Abstract:
US stock prices may be at a reasonable level if analysts' corporate earnings forecasts are accurate, according the Federal Reserve chairman, Alan Greenspan. US share prices could still fall if earnings are not as strong as expected. Weaker earnings could result from a stronger US dollar, slower economic growth, and a lessening of the impact of corporate restructuring. Share prices could also be affected by changes in interest rates and inflation.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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