Will Markets Rebound Following Last Week's Carnage?

As many families get ready to return to school after summer vacation, the hot subject of discussion in many households this past weekend was the current state of equities markets across the world.

Following a red-hot number of years after the end of the "Great Recession", many investors are now having to watch as their portfolios quickly erode. Apple, Inc., for instance, which is a mainstay in many investment portfolios across the world, is now down 20% from its highs. Will these investors look to stay the course, double down or get out at any cost to protect their gains?

The markets plunged on Friday, with the Dow Jones Industrial Average dropping over 500 points. There are a number of worries and uncertainties that are weighing on the market right now - China, for instance, is showing increasing signs of an economic slowdown, which is, in turn, having a profound impact on commodities prices. Oil has been trending lower for months now, taking the economies of nations such as Russia and Canada with it.

In addition, an upcoming election in Greece as well as a Federal Reserve meeting have many people cautious to step up to the plate to buy.

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The markets have been unbelievably resilient over the past number of years, shrugging off every debt ceiling crisis, every hiccup in negotiations between Greece and the rest of the European Union and every geo-political crisis. Buy, buy, buy has been the mantra since the "Great Recession" ended - every pull-back has been greeted with a higher high.

Does this time feel different? Will the situation in China stabilize and will stocks like Apple, Inc. hit new highs, or do we need to come to terms with the fact that the bull market is now officially over?

Filed under: General Market News