Tightening Financial Conditions Have Impacted Asset Values

Original Post (Policy Center for the New South)

In the first half of this year, U.S. stock markets suffered a fall not seen in more than 50 years. The S&P 500 index on Thursday June 30 was more than 20% down compared to January, a drop not experienced since 1970.

The S&P 1500 index, built by Bloomberg and incorporating companies of various sizes, has seen more than $9 trillion in stock value disappear since January. Except for energy stocks, all sectors have suffered value reductions. On Wednesday June 29, Citi announced that it expects the S&P 500 to fall by around another 11% by the end of the year.

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