It might not be the start to the year we all wished for, but there’s no reason to panic.
“Despite some familiar issues, we believe that global stocks have further room to rise in 2021, and that low interest rates continue to make equity valuations look attractive relative to bonds and cash,” said Mark Haefele, chief investment officer at UBS Global Wealth Management, in a note to clients.
Meanwhile, the economic data released Monday wasn’t too bad. America’s manufacturing industry was strong at the end of 2020 and the IHS Markit purchasing managers index for the sector rose to its highest level since September 2014.
Construction spending for November came in just below economists’ expectations.
But it wasn’t just stocks that tumbled Monday.
US oil prices took a hit and fell 1.6%, or 78 cents, to $47.73 per barrel, amid a teleconference between the OPEC nations and other petroleum producing allies to determine production levels for February.