global economy

Why isn’t the Rest of the World Growing like US?

August 19, 2014

Investors continue to be faced with a great deal of geopolitical uncertainty. While the cease-fire between Israel and Hamas continues, the geopolitical news regarding the conflict between Ukraine and Russia as well as ISIS and Iraq have escalated. In fact, last Friday, markets experienced a roller-coaster of a day on news of Russian armored vehicles entering into Ukraine. Russia denied the incident, but the markets’ reactions tells us the investors are nervous about the future of this conflict.

Investors are also nervous about what impact these conflicts are having on economic growth. Trade sanctions and fear brought on by the uncertainty of war added to the already challenged growth in Europe. Last week we saw that the Gross Domestic Product (GDP) growth rate in the Euro-zone slowed to 0.2% for the second quarter according to Eurostat. (more…)