Just when things started to get better, the U.S. stock market took another tumble. The stock market had just begun to regain ground after the worst few months since the global financial crisis when more bad data out of China and domestically sent stocks spiraling. China’s growth has slowed and large U.S. corporations have been posting less than stellar earnings. The global economy is definitely heading into a time of uncertainty.
Concerns sparked when oil shot about 8% lower on the week. But even bigger issues arose when some corporations posted their earnings. This weeks earnings were weak, revenues have been week the entire quarter and show no signs of improving. Some say this is just a blip on the road to recovery, others say this is a sign of huge cracks in the economy.
China is not getting any better either. Manufacturing data and their corporation revenues have been extremely weak. The country has also been manipulating their currency in an attempt to bolster their economy, but so far it has not worked and has hurt other countries more than it has helped China.
Rough times are certainly ahead. How we will emerge is still uncertain. The economy could derail just as easy it shoots higher.