Asian Markets Roil as Fear Spreads
The turmoil in the world’s financial markets showed little sign of abating on Tuesday, with selling once again sending stock markets in Asia lower as investors dumped equities in favor of traditional havens like gold and U.S. Treasury securities.
“When you get declines of this sort, it is technical factors and emotion that drive markets — the fundamentals are largely irrelevant,” said Stephen Davies, chief executive of Javelin Wealth Management in Singapore, referring to Wall Street’s plunge on Monday. The stock market there saw its worst day since December 2008, in the midst of the global financial crisis.
The S.& P. 500 is now down 18 percent from its April 29 peak and is nearing official bear market territory, defined as a fall of 20 percent.
Gold, by contrast, has soared from $1,485 per ounce at the start of July, vaulting the $1,700 mark on Monday and rocketing to just under $1,770 at one point on Tuesday before falling back to $1,750.
US stocks rise after big fall
"I think that stocks were cheap heading into the decline, and they just became cheaper," said Brian Jacobsen, chief portfolio strategist for Wells Fargo Funds Management, which has $228 billion in assets under management. "As a long-term investor, that's what I like to see."
Interesting photos: Traders react to losses
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