Investors are concerned about the economic situation
In 2014 situation on Wall Street comes to be not that successful as in late 2013. After a record increase of many indexes, activity level at the American Stock Exchange declined. For example, the Dow Jones index fell by 1% during yesterday's trading session, as reported by USA Today.
Here are five reasons for decline in major U.S. indexes, the value of which have been improving for several years.
1. Bad beginning of the year
January is connected with big discounts and active retail sales. But this year, retail chains failed to get the amount for which they intended. So, instead of providing the entrepreneurs with a positive attitude, the start of a new year just alerted investors.
2. Decrease in income from retail
In recent years, retail sales in the U.S. dropped significantly, forcing Wall Street to review a favorable economic outlook for 2014.
3. The high cost of shares
Commercial bank Goldman Sachs said that after last year's 30 % gain, the markets are no longer cheap and profitable platform for investment.
4. Uncertainty in terms of incentive reducing programs of the Fed
The sharp slowdown in job creation in December 2013 forced to think about what would be best for the U.S. economy at the moment - a further incentive in reduction programs, or return to monthly purchases of bonds.
5. Market correction
Investors basically are concerned about a possible change in stocks in the opposite
