David Letterman forever closed the curtain on Wednesday to cap a 33-year career as the king of comedy.
But the show goes to the stock market. Yes, you may be at a record high, but we expect many awkward silences, bad jokes and surprise guest appearances and late (also known as corrections).
In honor of The Big Man, this is the Top 10 CNNMoney “The actions could actually become a chaos this year.”
10. Superdesaceleración of China
It’s no secret that the Chinese economy is slowing. The question is how will he fall? China’s central bank cut interest rates to stimulate a rapid recovery, but there are still few signs of a turnaround.
The Chinese economy grew 7% in the first quarter of 2015, its slowest pace since 2009.
9. Department of Correction
It’s like a bad joke in which you do not understand the final shot. The market has not had a correction, when falls by 10% or more-since 2011. Historically, it is a long time without one. Many experts believe that a correction would actually be healthy for the shares.
But there is no sign of it yet. In fact, the S & P 500 hit another record high this week.
8. The Greek drama has a bad ending
There are still widespread concerns that Greece could default on its debt this year. Greece has recently made progress, but could still fall into default in June, which would cause uncertainty -the key ingredient of the volatility-markets. Some economists believe that there is a probability of between 30% and 40% drop in Greece default and leave the eurozone.
7. The stronger dollar hit profits
The dollar has lost some of its momentum from earlier this year, but still has much more value than a year ago, compared with most currencies. That’s a problem for big business and American employers.
On Tuesday, Walmart reported first quarter earnings that were hurt by the stronger dollar. Walmart International sales fell 6.6% from a year ago. Many other multinational companies such as Coca-Cola and McDonald’s, say the dollar is reducing the profits of their business abroad.
6. The Fed throws it all away
Investors around the world are waiting to see when the Federal Reserve will raise interest rates key, which affect millions of Americans and global markets. If the Fed acts too soon though just said that is unlikely to give rise in June-or too late, the markets could take bad news, which would result in a massive sale of shares. The timing is the key.
5. Does anyone-anyone grow your business?
The companies are not developing your business as much as they did a couple of years . Investment costs measure how much a company spends on itself; whether to renew a new office or buy new equipment.
The investment expenditures have grown 2.4% in the first quarter of 2015. That’s better than a year ago, but well below the 26%, 19% and up from 4.8% growth in spending Investment recorded respectively in 2011, 2012 and 2013, according to Lindsey Bell, an analyst at S & P Capital IQ.
4. The problem P / G
US stocks are expensive. A key criterion for understanding the value of the shares is the Shiller price index gains. It is currently 27.1, its highest level since 2007, just before the financial crisis. The index does not suggest that history will repeat itself, but it raises concerns about how much more room to grow is the bull market.
3. Oil, oil everywhere …
The oil has rebounded after hitting its low of $ 43 a barrel in March ; now it has risen to $ 58. However, it is still well below $ 100 per barrel recorded in August. That affected the majority of energy companies and pushed many energy-dependent economies such as Russia and Saudi Arabia. The world simply has too much oil on the market right now. The rebound of oil could be an important factor in the success or difficulties of the markets this summer.
2. Show me the profits!
The US companies have had a tepid earnings growth this year. A strong dollar and the slowdown in China are among the causes that have afflicted growth.
The growth of earnings per share of companies in the S & P 500 is around 2.9% in the first quarter compared with a year ago. That figure was slightly lower last year, but also in this case, the revenue growth in the first quarter is much weaker compared to previous year bull markets.
1. God bless (more) United States, please
The US economy is not doing its part. Economic growth in the first quarter was almost flat and predicted Fed Atlanta for the second quarter estimated to be less than 1%. Last year, economic activity rebounded after a weak first quarter. It does not seem that this will happen this time.
Many economists still believe that the United States will gain momentum later this year, but it might be too late and too little to 2015.
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