Page 25 - ARUBA TODAY

BUSINESS Monday 19 august 2019
A25

Stock market gyrates as the economic picture gets blurred

By STAN CHOE He sees the volatility as an
ALEX VEIGA opportunity to buy stocks
Associated Press at cheaper prices, and
You’re not the only one he’s recently been partial
confused about where the to bank stocks, which have
economy is headed. Just been hammered on wor-
look at the stock market, ries that lower interest rates
where perplexed investors will hurt their profits.
have been sending stocks “When you have volatil-
on a wild ride in August. ity like this, you’re actually
And there could be plenty buying the market on sale,”
more where that came said Rob Scheinerman,
from. Two notoriously vola- CEO of AIG Retirement
tile months for stocks lie just Services. “That’s a great
ahead. thing.”
Stocks around the world Technology companies
jumped Friday to cap an- and banks did the most to
other tumultuous week. drive Friday’s broad rally
Investors have been franti- as investors regained some
cally trying to rejigger their appetite for riskier holdings.
predictions about whether Utilities, which have been
President Donald Trump’s one of the safer havens for
trade war and slowing investors this month, lagged
economies around the Trader Peter Tuchman works on the floor of the New York Stock Exchange, Friday, Aug. 16, 2019. the market.
world will drag the United Associated Press The S&P 500 rose 41.08
States into a recession. In time in the last 10 days that “We’re also heading into a fessional investors also cau- points, or 1.4%, to 2,888.68.
the U.S., the result was a the S&P 500 swung by at tough season for the mar- tion that this kind of turmoil The Dow, which had an
week where the Dow Jones least 1%, something that ket,” said Emily Roland, co- is actually normal for the 800-point drop earlier in the
Industrial Average had four hasn’t happened since the chief investment strategist market, when looking at it week, added 306.62 points,
days where it rose or fell end of 2018, the last time at John Hancock Invest- from a very long-term point or 1.2%, to 25,886.01. The
by more than 300 points investors were getting wor- ment Management. “Sep- of view. The U.S. stock mar- Nasdaq climbed 129.38
— with an 800-point drop ried about a possible reces- tember and October tend ket historically has had such points, or 1.7%, to 7,895.99.
thrown into the mix. sion. At that time, they were to be the most volatile of bursts of tightly packed Investors favored smaller
On Friday, the S&P 500 rose concerned about rising in- the year for markets. We’ve volatile days, interspersed company stocks, which
1.4%. The Dow climbed 1.2% terest rates, along with the been talking to investors for between longer periods pushed up the Russell 2000.
and the Nasdaq picked up trade war. that reason to look for ar- of calm. Since early 2009, The index rose 31.99 points,
1.7%. But each index still fin- Don’t expect the volatility eas to prune risk within a whenever the S&P 500 has or 2.2%, to 1,493.64.
ished with a third-straight to go away anytime soon, portfolio.” had a drop of 3% in a day, Even with the latest bout of
weekly decline. analysts say. No one knows The S&P 500 has lost an av- it either preceded or fol- turbulent trading, the S&P
Stocks, bonds and other when Trump’s trade war will erage of 1.1% in September lowed another such drop 500 is still having a good
investments heaved up find a resolution, nor wheth- over the last 20 years, mak- within a month 70% of the year. The broad market
and down throughout the er all the uncertainty it’s ing it the worst-performing time. “What’s been abnor- index is up 15.2% for 2019.
week, with worries hitting created will push enough month of the year. Octo- mal is the super-low volatili- Similarly, the Nasdaq is still
a crescendo on Wednes- businesses and shoppers ber’s track record is bet- ty” that investors have been up 19% for the year.
day when a fairly reliable to hold off on spending ter, but it includes the worst enjoying for much of this Long-term bond yields also
warning signal of recession and cause a recession. monthly performance in bull market, which began climbed Friday. The yield
flipped on in the U.S. Trea- Some investors are digging that stretch, a nearly 17% in 2009, said Brian Yackt- on 10-year Treasury rose
sury market. in for trade tensions to last drop in 2008. man, portfolio manager of to 1.56% from 1.52% late
Friday marked the seventh through the 2020 election. But Roland and other pro- the YCG Enhanced fund. Thursday.q

US home building fell 4% in July, slowing housing market

age of skilled labor and af- solid job market and fall-
fordable land. ing mortgage rates have
The Commerce Depart- boosted interest among
ment said Friday that hous- people seeking homes, yet
ing starts slipped last month the shortage of available
to a seasonally adjusted homes and rising prices
annual rate of 1.19 million have dampened sales. The
units. So far this year, hous- slowdown in construction,
ing starts have declined which in turn contributes
3.1%. Though there was to the scarcity of available
a slight 1.3% uptick in the housing, may contribute to
construction of single-fam- a weakening of the overall
ily homes last month, the economy.
In this June 19, 2019, file photo a worker carries shingles for a roof gain was offset by a 17.2% “A dearth of cheap lots
of a house under construction in a Brandon, Miss., neighborhood. plunge in the apartment and persistent labor short-
Associated Press category. ages are constraining build-
By BANI SAPRA struction fell a sharp 4% The construction slow- ers, especially for homes
Associated Press in July despite strong de- down, which has persisted costing less than $300,000,
WASHINGTON (AP) — The mand from would-be buy- all year, is thwarting pro- which have the greatest
pace of U.S. home con- ers, held back by a short- spective homebuyers. The demand,” Frick said. q