Market Round Up: Fearful Sell-Off 😱 IMF Warns of Crypto Risks 🚦🚥

by | 11 Oct, 2018

 

1. Fearful sell-off

It was a bit of an epic bloodbath for global equities yesterday, with the S&P 500 suffering massive intraday losses in excess of 3%. A cocktail mix of developments appear to have spooked the markets, including the recent rise in treasury bond (UST) yields, a warning from the International Monetary Fund (IMF) on global growth and a lingering Sino-US trade spat.

Some investors may also be starting to question whether the U.S. stock market’s strength is really justified. The S&P has retreated from recent record highs and technicals and futures are hinting further losses.

Meanwhile, President Trump weighed in on the stock market sell-off, labelling it a long-awaited correction, whilst again criticising the Fed for its policy path by claiming that the Fed had gone “crazy”. The IMF’s Christine Lagarde has since come out with comments in which she defended the Fed’s Chairman Jerome Powell, lauding him and his committee for basing their rates hike decision on actual information, rather than political pressure. Notwithstanding, the constant remarks from Trump will not go unnoticed by global investors. We will be watching the markets with bated breath.

 

2. IMF warns of crypto risks

If you thought stock investors were flying to crypto currencies as an alternative haven, think again. It isn’t happening. Furthermore, the roller-coaster fluctuations in values of crypto currencies could contribute to a weakened global financial system, says the International Monetary Fund in its key annual report.

“Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services”, said the report. While the Global Financial Stability Report (GFSR) recognised that the rapid development of crypto currencies and blockchain-focused fintech companies had “potential benefits”, it also pointed out that the “knowledge of potential risks and how they might play out is still developing.”

Despite its crypto warning, the IMF still sees escalating trade tensions between China and the U.S. and the mounting weakness in emerging markets as far more serious. So where’s the investors safe haven? Cash?

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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