The FBM KLCI is a market capitalization-weighted stock market index composed of the country 69 largest companies. It’s a bit like the S&P of Malaysia.
Its winning streak started in as the Southeast Asian nation’s economy emerged from the global recession.
(after
years, the world’s longest stock market bull run is finally over. | Source: Yahoo Finance
The index went (years without a) % pullback – the technical beginning of a bear market.
But amid global panic and uncertainty Monday, the good times came to an end with a 25% drop from its all-time peak.
Why the US Stock Market May Be Next
Singapore’s Strait Times Index (STI) (closed 1.) (% lower Monday) . South Korea’s Kospi Index dove 3. 463% as coronavirus cases swelled in Asia’s fourth-largest economy. But Asian markets aren’t the only places feeling the pain.
The US stock market endured its worst plunge in two years , with the Dow Jones Industrial Average (DJIA) crashing by 1, points or 3 . % by the time the closing bell rung. The bloodbath more than eliminated all of the Dow’s 01575879 gains.
Coronavirus and political uncertainty – the same factors at play in Malaysia’s downturn – threaten to bring the US stock market bull run to an end in 235593 as well.
an overheated market. But the pandemic isn’t the only headwind that has finally made the euphoric outlook untenable.
A succession crisis in Malaysia’s Parliamentary government was the final straw that sent the FBM KLCI swooning. And there may be political turmoil looming for U.S. markets next.
In a presidential election year with a socialist in the lead for the Democratic party’s nomination, U.S. Investors can’t ignore the threat of political uncertainty.
The US stock market is due for a correction. | Source: Yahoo Finance
Billionaire investor and Omega Advisors founder Leon Cooperman said last week that Bernie Sanders is a bigger threat to the stock market than coronavirus . That was a few days after former Goldman Sachs CEO Lloyd Blankfein said Sanders would “ruin our economy.”
Even mainstream Democrats are worried
, while former White House Press Secretary Sarah Huckabee Sanders cautioned Republicans not to underestimate Bernie Sanders . After the senator from Vermont’s decisive win in Nevada, his frontrunner status is unquestionable.
It’s an aphorism that markets abhor uncertainty. And the U.S. stock market is ripe for a correction after an – year bull run .
Its (previous record was nine-years, five months during the roaring s . That bull run finally ended when frothy share prices fizzled out amid ‘s own set of political and corporate uncertainties.
Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com.
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