On January 21st, the US media said that due to global economic instability and US-China trade tensions, the Russell 2000 Index, which focuses on small US stocks, has fallen by nearly 15% since October last year.
According to CNN's January 16 report, Chris Gaffney, president of global market for TIAA Bank, said investors will encounter small US companies given the weakening demand in China and other international markets. The situation may make a wrong inference.
“Small stocks are not protected by trade wars, and although many of them don’t export to China, they supply supplies to companies that make products,†he said.
The report believes that in the current global environment, the United States alone is a myth.
“In a globalized world, there is no isolation,†said Raoul Parr, founder of Global Macro Investment Consulting and CEO of Real Vision, a financial media website.
Parr pointed out that large US companies such as General Electric, General Motors and Ford have a heavy debt burden, and they can provide little help to small companies that need to borrow money to expand.
According to the report, as more and more American giants are downgraded by credit rating agencies, it will be more difficult for small businesses to obtain loans.
"The weakness of the corporate bond market will be a problem for everyone," Pal said. "This may freeze the loans of small companies."
2 In 1 Screwdriver Set,Wood Chisel,Double Edge Saw File,Diamond Saw Blade
SHAOXING SINO IMPORT & EXPORT CO.,LTD , https://www.sxsmarto.com