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MarketWatch's Gold: Global Economic Weakness Won't Hurt US

By    |   Thursday, 09 October 2014 02:26 PM

While Federal Reserve policymakers expressed concern in their September meeting that the global economic slowdown could weigh down the United States, MarketWatch columnist Howard Gold isn't so worried.

"Will the rest of the world drag the outperforming U.S. into the mud? I don't think so," he writes.

"The U.S. markets, economy and central-bank policies have real strengths I don't see elsewhere, and the multinationals in the S&P 500 are less dependent on the rest of the world than you might think."

U.S. GDP expanded 4.6 percent in the second quarter, compared with zero growth for the eurozone and a 7.1 percent contraction for Japan.

A correction to the five-year bull market for U.S. stocks may be upon us, but "I don't think it's the beginning of a new bear market, and we may well see those all-time highs again within months," Gold explains.

The S&P 500 hit a record peak of 2,019.26 Sept. 19. It closed at 1,906 Friday, down 1.2 percent from Thursday.

"For many reasons — season, technical and fundamental — this is a good time for a correction. But that's all I think it is," he adds. "The U.S. economy and markets have come a long way. They're not ready to throw in the towel yet."

Others are worried about U.S. stocks.

"The fear is that global interest rates are so low that there's risk of deflation, and the economic recovery, which has shown some steady progress, is now deteriorating,” Tim Ghriskey, chief investment officer at Solaris Asset Management, tells Bloomberg.

"The news out of Europe is nothing new, but it's come to front and center now," he explains, referring to comments from European Central Bank President Mario Draghi expressing concern about Europe's economic weakness.

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While Federal Reserve policymakers expressed concern in their September meeting that the global economic slowdown could weigh down the United States, MarketWatch columnist Howard Gold isn't so worried.
Gold, global, economic, market
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2014-26-09
Thursday, 09 October 2014 02:26 PM
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