Investing in the Future, Now.

"Global Growth Concerns Stock prices have been falling due to three main growth concerns: 1. Slower economic growth in China - China's economy grew 7% in the first half of 2015, which was half its pace in 2007. China's severe slowdown has crimped demand for commodities, reducing their prices. So countries that export oil and other commodities have been hit hardest, especially emerging markets. We expect the impacts of slower growth in China to continue to ripple through markets short term, as investors watch for signs of stabilization. 2. First Fed interest rate increases - The Federal Reserve (Fed) has said if the economy continues to improve as expected, it will start to raise short-term interest rates later this year. That should be a positive sign for investors. But low inflation, China's slowdown and other comments in the minutes from the Fed's recent meeting have prompted greater uncertainty about the Fed's next move. We continue to think you should be prepared for interest rates to rise slowly and modestly, whether the Fed moves quickly or delays awhile longer. 3. Lower oil prices - Oil prices fell to around $41, their lowest in more than six years. Although the pain from falling oil prices is obvious in lower prices for energy companies, consumers and energy-using companies are benefiting. And that's one reason to expect improving economic growth. Eventually, falling oil prices will prompt rising demand and lower production, rebalancing the market. These concerns aren't new, but recent indicators brought them to the forefront. As is frequently the case, stock prices reacted sharply. But it's important to realize the U.S. remains one of the faster growing developed economies, and we expect growth to improve slightly to 2.5%-3% over the next year. In addition, global growth should rebound as policymakers work to boost growth in the rest of the world."

Source: Edward Jones Financial Advisor