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In recent weeks, it has felt like the U.S. stock market slips a gear every so often, dropping sharply as investors search for traction in uncertain terrain. Many of the individual stocks in the major U.S. stock indexes are down 20% or more from their peaks this year, creating the equivalent of a stealth bear market, even if the indexes themselves haven’t hit that point. At the same time, investors are bracing for the Federal Reserve to start raising interest rates in March. Other major central banks are already doing so, representing a remarkable policy shift from only a few months ago.
From a global perspective, although investors generally believe rising U.S. rates often lead to a downturn in emerging-market stocks, that isn’t always the case. Meanwhile, the tense Russia-Ukraine situation has affected the Russian stock market, but if history is a guide, the impact is unlikely to spread.
If you pull up the full article with the link below, there is a great Listen Now "audio Schwab Market Perspective" link. It spends a couple of minutes on these timely topics:
- U.S. stocks and economy: Stealth bears lurk
- Fixed income: A rapid policy shift
- Global stocks and economy: Rates hikes and emerging-market stocks
- Russia-Ukraine: What investors should know
Schwab Market Perspective: Slipping Gears
by Liz Ann Sonders, Jeffrey Kleintop, Kathy Jones
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