The year is only two weeks old but investors are already down in the dumps. (Tweet This)
Global equity markets kicked off 2016 on the wrong foot as concerns over a slowdown in China, as well as plunge in oil prices, have weighed. The S&P 500 has shed about 9 percent this year and has teetered in and out of correction territory, or more than 10 percent off its 52-week high, for most of the year.The Dow Jones industrial average and the Nasdaq composite have fallen about 6 percent and 7 percent year to date, respectively.
The weekly American Association of Individual Investors survey found that only 17.9 percent of investors believe stock prices will go up over the next six months, marking the lowest level of bullishness since April 2005.
"I think the slide correctly came out of China and reflected on commodities," said Kim Forrest, senior equity analyst at Fort Pitt Capital. "That gave investors a pause."
Michael Arone, chief investment strategist at State Street Global Advisors, said "the market is coming to realize that emerging markets — particularly China — have contributed a significant amount of global growth [for a long time]. I think the view was that the U.S. and other advanced economies would be able to pick up the slack."