Throughout the years, America's economy has definitely taken a major drop. In the past few months, the stock market has begun to sink and many investors are looking elsewhere for investment opportunities. Of course, America isn't the only country in trouble. In fact, world finance leaders suggest that there are threats and trouble ahead for the economy on a global scale. Will the economy be able to bounce back? Or, will consumers continue to feel concerned, when attempting to invest in the American stock market?
According to bloomberg.com/news/articles/2015-04-23/consumer-comfort-in-u-s-falls-for-second-week-on-finances-view, the consumers of America have lost all comfort when attempting to invest. In fact, lower and middle-class Americans have found that their financial well-being is beginning to look dim. Of course, some classes believe that the future is bright. Homeowners actually saw a minor increase in the value of their homes. Still, there are very few individuals, who can actually afford to purchase a home. Therefore, will this minor increase even help these individuals?
On the global level usnews.com/news/business/articles/2015/04/19/world-finance-leaders-see-threats-ahead-for-global-economy. The economic officials of the United States and Europe see trouble ahead for the global economy. At the same time, these individuals are worried about Greece potentially defaulting on its debt. If this were to happen, the global economy would face even more trouble. In order to attempt to solve the problems, the central banking governors and finance ministers from around the world have met in Washington, in hopes of creating a vibrant and job-rich economy around the world. Of course, they suggest that risks are present when attempting to meet these goals.
Greece is currently attempting to make deals with European authorities and IMF, in order to secure 7.2 billion Euros, in hopes of bailing themselves out of their financial status. Since 2010, the country has relied on loans from international sources, in order to keep their economy afloat. In America, investors are hesitant to invest in the country's stock market. A recent report suggested that an enormous amount of investors pulled out their investments, during April. This action has been noted as the worst exodus, since the actual financial crisis. This same month, United States equity mutual funds experienced an outflow of nearly 35 billion dollars. This has been the most telling swing away from American investments, since October of 2008.
Of course, some individuals suggest that this might actually be a good thing for the stocks in America. In fact, Stephan Touizer of equityfeed.com, suggested that the move will actually help to prevent a crash. He insists that people fleeing the market will help to avoid an instantaneous crash. At the same time, some experts believe that American investors are taking their business to the global markets. Global opportunities are enormous and many see potential gains in this realm.
While the future remains unknown, it is likely that the American stock market will bounce back and the investors will return in masses. If this doesn't happen, individuals will need to look to the global market, in order to make worthwhile investments.