Now that stocks have dropped, what should investors do? Tempting as it is to react to the current state of the markets, it may be your worst option. The Schwab Center for Financial Research explains the situation. As recent history has shown, bull markets can have short-lived corrections. If you’re wondering if this is one of those, it’s helpful to look at what markets typically do after a correction. Evelyn Cheng charts previous corrections for CNBC. Any market forecasts are factoring in the current rise in inflation, sparked by the January surge in annual wage growth. Lucia Mutikani looks into the pressure that inflation is putting on U.S. financial markets and how it will affect interest rates.
Volatile Markets: Here’s What You Should Know– Bouts of market volatility are an unnerving, but normal, feature of long-term investing. Yet it’s hard to sit still when the market is sliding. You can’t help but think: “Shouldn’t I be doing something?” Every investor is different, but here are a few steps that everyone should consider. Read more…
The Stock Market Is Officially In A Correction… Here’s What Usually Happens Next– The S&P 500 fell officially into correction territory on last week, down more than 10 percent from its record reached in January. “The average bull market ‘correction’ is 13 percent over four months and takes just four months to recover,” Goldman sachs Chief global Equity Strategist Peter Oppenheimer says. Read more…
U.S. Consumer Price Index Up More Than Expected– U.S. consumer prices rose more than expected in January, with the measure of underlying inflation posting its biggest gain in a year. This strengthens expectations that price pressures will accelerate this year and prompt a faster pace of interest rate increases from the Federal Reserve. Read more…
John R. Day, Bill Ennis, Stephanie Hall and Matt Heller