Evans Chamberlain Asset Management reports on stock market's worst crash since 2008

TAIPEI, Taiwan, Feb. 9, 2018 /PRNewswire/ - Evans Chamberlain Asset Management has recently reported on the latest week of volatility and sell-offs in the U.S. and global stocks giving an insight to why ‎there's really never a single explanation the markets taking such ‎a sharp dive.‎

Evans Chamberlain Asset Management research department that specialize in US equities have conducted that in recent days we have had many bullish fundamentals leading up to the crash, including ‎an upbeat US jobs report and GDP now expanding at more than ‎‎2.5% for four straight quarters. ‎

On the face of it, the stocks collapse was due to a market that ‎was overbought, overvalued, and excessively bullish, rising even as economic ‎conditions were not supporting the advance.‏ Throughout last two months, there was speculation of ‎bubbles being burst following a rise of more than 40% in the major indices in less than a year.‎

Oliver Kovac, Head of Corporate Trading at Evans Chamberlain Asset Management, said: ‎"I still think this is a continued reaction to the very rapid rise in interest rates and ‎inflation expectations over a short period of time."‎

The dizzying gains of Wall Street have finally unnerved investors, as lofty ‎valuations and the prospect of interest rate hikes came in play to spark a major sell-off.‎ Even negative political developments in recent months failed to deter the relentless drive higher in stock ‎markets.

James Royce, Director of Mergers & Acquisitions at Evans Chamberlain Asset Management, added: ‎"Like Monday's sell-off, we believe the latest move lower was ‎initially triggered by growing pains as investors digest the implications of above-trend ‎economic growth for central bank policy and inflation."

On the fundamental analysis front, the main culprit seemed to be fears of ‎interest rate hikes in the US as If inflation is moving up, which in turn could mean that corporate profit margins are about ‎to be pinched – ‎hence the sell-off.

About Evans Chamberlain Asset Management: We present a comprehensive suite of financial and investment management services that evolve in line with the ever-changing economic landscape. To facilitate change, our services are developed around the specific needs of our clients, as we maintain flexibility in our approach to portfolio design and true diversification.

SOURCE Evans Chamberlain Asset Management