If you had never looked at a chart of any of the major stock market indices — the Dow Jones Industrial Average, the S&P 500 or even the Nasdaq Composite Index — before and you saw one from last week, you would likely say, “What happened?”
You and I know we saw a sell-off in the stock market that was started by talk of an Argentinean default and then continued with the sharp rise in the Employment Cost Index, which climbed 0.7% in Q2 2014, up from a 0.3% increase in the first quarter, and the initial 2Q 2014 GDP reading of 4%. It was those second and third events that got chins wagging about the timing of interest rate hikes by the Fed. As you know, rising interest rates can create opportunities in several areas, but they could cause problems in others, like housing, for instance. Even thought the Goldilocks July Employment Report took the heat off all the Fed talk, renewed tension in Russia regarding what may or may not happen with Ukraine weighed once again on the market this week.
Read more about how you could be making the most of the recent sell-off at Eagle Daily Investor.