If this Key Trend Ends Stocks Could be in Trouble

stock market trendIt could be called the Great American Dichotomy: As the rest of the world struggles, the American economy continues to slowly grow. But some traders say that investors are making a big mistake if they think this divergence will continue forever.

After Caterpillar (CAT) released earnings Thursday, CEO Doug Oberhelman told CNBC’s ” Squawk Box “: “We’ve seen a real dichotomy here in the world. The U.S. growing fairly slowly but growing steadily, and everywhere else, there’s not much good news outside the U.S. China is down significantly year over year. Brazil is weak economically. And Europe is still kind of flat but in our case down year over year.”

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This article has 7 Comments

  1. Zacharia Y.

    It is a very fascinating dichotomy that the US economy is slowly growing (i watched the NASDAQ hit a record high) while the rest of us including Canada (e.g. Loonie) continue to retract.

    My only guess is US is just delayed and 2015 will be the year it comes in line with the rest of us.

  2. Samson

    Equity markets are still positive. I expect positive movement. The TSX is having a slight spell but i expect it will be moving up again shortly.

  3. Matt

    It's probably due to market gidders of Greece.

  4. Jered

    Can someone save me time? i still don't know what this key trend is.

  5. Haydn Tuggel

    One can't help but admire how the world economy is connected. And even if the American industry is still chugging along there is definite signs of slow down. It's in the sectors — they are hidhing things.

  6. Moshe B.

    China has been sluggish and the Eurozone issue are the key factors. I honestly dont think Canada is in too much of a recession. There are good signs for us.

  7. Grant Munger

    I never can understand why market analysts think every day the economy needs to be improving or we are in a slump. Inevitably something like this is going to happen. It's cyclic.

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