The world’s longest-running equity bull streak comes to stop on this Monday and this is something that every investor must watch closely now. The global sell-off directs that the US stock market can be the next target, read this post to know about this further.
The Malaysian Stock market finally ended its 12 year-long equity bull run on this Monday. One of the major indexes of Malaysia, FTSE Bursa Malaysia KLCI Index took a dip of 2.69% on this fateful day to end the record streak the market had been enjoying for such a long time now. This is rightfully a negative record in the global stock market and the investors of the US Stock market should not ignore such a steady dip.
The FBM KLCI is more or less like the S&P 500 of the Malaysian Stock market. It is a capitalization-weighted stock market index that holds the country’s 30 biggest companies. The winning streak of this index began back in 2008 after the Southeast Asian country’s economy emerged from the remains of the global recession in the same period.
In the last 12 years, the index didn’t face even a 20% pullback which technically marks the beginning of a bear market. However, as the global panic regarding the rising cases of Coronavirus took center stage, the index dropped by 21% from its record all-time peak.
Singapore’s Strait Times Index closed on Monday 1.22% lower while the Kospi index in South Korea took a tip by 3.87% due to the rising number of Coronavirus cases in Asia’s fourth-largest economy. However, Asian markets aren’t the only ones that are feeling the heat!
The US Stock market took a massive plunge, probably the biggest in the last 2 years with the DOW Jones index losing around 1031 points by the time the closing bell rang. Such a huge dip nearly took away all the gains the index had earned in the year 2020.
Experts believe that the downturn this Monday might just be the beginning of the global recession which is due to happen. When we speak about Malaysia, the Coronavirus and the political uncertainty are the only reasons for such a steep decline and it a fact that the US also is suffering from the same issues so the market isn’t safer here too! With Presidential election looming around the corner, the US Stock market investors cannot ignore the fact that they are at risk of losing money sooner or later.