Global Bloodbath

The S&P 500 fell 4.1% today for its first 4%+ drop since August 18th, 2011. There have been 144 prior one-day drops of 4%+ for the S&P, and on average the index has gained 0.32% on the next trading day.We’ll see how that stat holds up tomorrow!

Below is a look at the performance of various asset classes using key ETFs tracked in our Trend Analyzer tool. For each ETF, we highlight its total return today, its total return since the 1/26 peak for the S&P 500, and its total return year-to-date so far in 2018.

Things were looking pretty good for global stock markets up until about a week ago, but as you can see, most areas of the equity asset class are now down on the year. That’s an amazing turnaround in a very short period of time. The only areas of green in our matrix are currencies and fixed income.

(Click on image to enlarge)

 

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Moon Kil Woong 7 years ago Contributor's comment

Once again all those rushing for riskier yield are getting pummeled, especially in 3rd world foreign investments that brokers have been pushing. We will see if the downturn continues. This will have to do with Treasury auctions and the dollar. If the dollar falls and treasury auctions push up yields we are probably looking at another leg down. Otherwise, I think things will begin to stabilize unless a trade war erupts or if the government shuts down again but with no clear solution to reopen.

The tax cut without cuts in spending are already hurting, especially since Democrats and Republicans are both fighting for more spending on top of the stimulus (that's what it is).