Saturday 17 February 2018

Losses on world exchanges bigger than the GDP of Canada and the UK cumulatively (1)

World stock indexes may have recovered some of their losses on the last day of last week, but the correction still raises serious problems for investors.
From the record high on January 26 for the Dow Jones Industrial Average and S&P 500 indices, the global market capitalization fell by as much as $5.2 trillion, according to S&P Dow Jones Indices.
This amount exceeds the GDP of the UK and Canada combined. In 2016, Canada's GDP amounted to $1.5 trillion, and the UK's $2.7 trillion.
In the same period, only the S&P 500 companies have erased about 2.5 trillion of market capitalization.
This happened after the fall in indexes brought the global exchanges into a correction phase or a moment when there was a fall of more than 10% on the indices.
With the recovery of the global economy, investors became more and more worried about central bank policies around the world, and rather its normalization and interest rate hikes.


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