"Stocks opened lower on Wednesday as sellers reasserted themselves in the midst of a wild ride for Wall Street.
The latest drop comes after three volatile sessions in which fear of rising inflation sent interest rates higher, pressuring equities. Traders also blamed computerized trading and sharp moves in obscure volatility funds that use leverage for the market's recent swings.
"I think this bull market is basically in the process of forming a top," Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, told CNBC's "Squawk Box" on Wednesday. "This is the first crack of it."
"Bull-market tops tend to be a process, not an event," he said. "The reason why this is likely to play out this year is the trifecta which has been driving global stocks over the last 12-to-18 months as a big tailwind is now bound to turn into a headwind." The trifecta Sharma refers to is better-than-expected global growth, weaker-than-expected inflation and loose monetary policy."
https://www.cnbc.com/2018/02/07/us-stock-futures-dow-data-earnings-market-sell-off-and-politics-on-the-agenda.html
The latest drop comes after three volatile sessions in which fear of rising inflation sent interest rates higher, pressuring equities. Traders also blamed computerized trading and sharp moves in obscure volatility funds that use leverage for the market's recent swings.
"I think this bull market is basically in the process of forming a top," Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, told CNBC's "Squawk Box" on Wednesday. "This is the first crack of it."
"Bull-market tops tend to be a process, not an event," he said. "The reason why this is likely to play out this year is the trifecta which has been driving global stocks over the last 12-to-18 months as a big tailwind is now bound to turn into a headwind." The trifecta Sharma refers to is better-than-expected global growth, weaker-than-expected inflation and loose monetary policy."
https://www.cnbc.com/2018/02/07/us-stock-futures-dow-data-earnings-market-sell-off-and-politics-on-the-agenda.html