Continued Stock Market Volatility Signifies Uncertainty Over Broad Economic Factors

The United States stock market has begun the New Year pretty much the way it closed out 2018 -- with one day of plummeting sell offs followed by a robust rebound the next. 

“Stock prices are based on expected future earnings. As long as those expectations remain stable, then stock prices remain stable,” Peter Zaleski, a Villanova School of Business economist says, “But, during the current times, there is a lot of uncertainty over various broad economic factors such as FED policy, trade negotiations, oil prices and Brexit.”

Does the market’s volatility signal an approaching recession?

“The market will not signal a recession, just the expectation of one,” according to Zaleski. “Within any given day, the market is subject to negative as well as positive news shocks more so currently than say a year ago when all news was pretty good.”

To speak with Zaleski, who specializes in markets, pricing and economic strategy, click on his headshot above, e-mail mediaexperts@villanova.edu or call 610-519-5152.