Shares and stocks are tumbling around the world, with investors worried that the next global crisis has begun in emerging markets and China. It’s a good question, and a brave bet

Sell in May and go away, don’t come back until St Leger Day. So goes the old stock market adage and rarely has the first part of that advice been more apposite than this year. The FTSE 100 index peaked on 27 April, just before the general election, and has been on the slide ever since. It is now down more than 10% from its peak, so fulfilling the definition of a correction.

On the face of it, there seems to have been no real reason for the slide in the FTSE 100 over the summer. Markets should have been cheered by the return of a majority Conservative government in the May general election. The economy grew by 0.7% in the second quarter and continues to be boosted by ultra-low interest rates. That, too, should be a source of comfort. Cash and gilts don’t obviously represent a better place for investors to put their money. The crisis in Greece has abated, if only temporarily. Yet the selloff has continued.

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Source: The Guardian Circular Economy RSS