A Sick Market Is Set to Be Tested Further

“Even after bouncing hard off last week’s lows, the stock market has appeared unwell.”

Based on current information from August 2015, Michael Santoli, the author of this article, explains some of the “big” problems that are affecting the stock market and the nation’s economy.  He cites the following major factors that account for the current downward spiral of the U.S. financial markets.

  • Economic slowdown in China
  • More realistic expectations for future economic growth
  • Lower forecasts for corporate earnings growth
  • Uncertainty about the Federal Reserve’s decisions that could impact interest rates
  • The political climate leading up to the 2016 presidential election

One final point:  The month of September is typically the worst month of the year for stocks.  September 2015 should be an interesting month to say the least–get ready and hang on for what promises to be a rough ride.

For more information, click here.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Point out that economic growth and the financial markets can go up or go down depending on factors like those described in this article. If you sell, what would you do with your money?
  • Stress that a long-term investment program that can even out the ups and downs in the market.

Discussion Questions

Although the stock market has been on the upswing for the last few years, the summer of 2015 has been a rough “ride” for most investors.

  1. If you are an investor and expect that it is time for a correction or downturn in the market, what would you sell some or all of your investments? If you sell, what would you do with the money?
  2. Some financial experts argue that a correction can be a buying opportunity to purchase quality stocks at lower prices. Do you agree?  Explain your answer.

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