January 24, 2014
U.S. stocks fell sharply and Treasuries rallied on Friday, with the Dow Jones Industrial Average tumbling triple-digits for a second session and posting its worst week since November 2011, as investors pulled money from emerging markets and other assets viewed as risky.
As Wall Street’s faith in some of the world’s largest developed countries unraveled,currencies of those nations were hit, with Turkey’s lira falling to a record low against the dollar, and Argentina’s peso down sharply against the U.S. currency.
“We’ve touched off by what’s going on around the world, so to speak, and are reallocating assets from some of the emerging markets into what is thought of as more reliable,” said JJ Kinahan, chief strategist at TD Ameritrade. “It’s a safe parking spot,” Kinahan added of fixed income.
“It appears this is a wait-and-see equity market that lacks near-term conviction, which is understandable after the strong returns of 2013. The market priced in a lot of positive economic news in 2013, and we recently have seen readings that point to some uncertainty,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
This article was posted: Friday, January 24, 2014 at 6:43 pm