Investing more money each month is something that everyone should do. Over a long period of time, there are few ways to build up your wealth quickly outside of investing. However, many investors are having a rough start to the new year in 2016. There have been many economic data points that show the market is contracting. Since the start of the new year, the stock market is down nearly ten percent. George Soros is a known economic voice and says that the current market conditions remind him a lot of 2008. There were many things going on during that year to make the markets so bad. Here are some of the most common economic points dragging down the current market.
China is one of the most important nations in the world when it comes to economic data. There are many people who are concerned about the overall health of the Chinese economy in coming years. There are a lot of things to suggest that economic growth in China is slowing. It is important for investors to watch closely for economic reports coming out of this country. If things continue to trend down, there are a lot of people who believe that the markets will be hit even harder in the coming weeks. This is one of the main reasons that George Soros is not confident at all in the stock market.
Price of Oil
Perhaps the biggest story of the new year is the fact that the price of oil is so high. There are many people who are excited about paying less at the pump. Although it is true that gas prices will be going down, oil is said to be a leading economic indicator in this market. As the price of oil continues to fall, there are many people who are worried about the entire energy industry. Oil drilling has been one of the best story lines for the United States over the past couple of years. If the price of oil continues to go down, there are many people who worry about the fact that this industry could see its growth drop dramatically. There are a lot of reasons to be concerned about the stock market, but the falling price of oil is perhaps the biggest reason why. George Soros believes that the market will continue to fall as long as the price of oil goes down.