The signs of a less robust Chinese economy and the economic turmoil in Europe have made the Investors worried. People are now scared that the US economy might fall and again go down to new lows. The weakened global cues have made the investors scared that the recession might be near and the debt crisis all over the euro zone and the Chinese weakness will make the global markets touch new lows. The overseas sales have been helping the US companies to beat the earnings expectations.
The average sales have helped the US companies gain and get good earnings. But now the US earnings have also started to fall and is struggling to find ground. According to the experts the crumbling effect in the Euro Zone will have a tremendous negative impact all around the world. It will be wrong to expect great earnings this quarter as one can see the cues have already been not that good.
Most of the companies have been troubling the markets all over the world and very less can be seen in the profitable region. The full year earnings are much below the market estimates. The S&P 500 finished the quarter with the worst performance since the year 2008 and the experts have slashed their expectations for the year end. The S&P has dropped 14.3% in the third quarter and has lost around USD1.7trillion in the market capitalization. The disappointing third quarter could trigger more losses and the markets could see more negative impacts.
Bell The Bull says the investor should not panic and invest wisely