Investors looking for economic growth
Posted Aug 8, 2011 11:01 am.
This article is more than 5 years old.
Investors around the world are running for cover following the landmark decision by Standard & Poors to downgrade America’s credit rating.
Markets world-wide plunged in their first sessions since the S&P decision announced Friday.
CIBC Chief Economist Avery Shenfeld says the wild ride on the markets will continue until the economy south of border starts to expand at a faster pace.
“The larger issue is that economic growth has been very lack-luster. And we’re hoping in the next few weeks we start to get some signs that the second half of the year will be better for the US,” says Shenfeld.
Shenfeld is quick to point out the U.S. isn’t the only economy having trouble, he’d like to see more from European banks to fix problems there.
“(See some) signs that Europe is addressing its budge deficit issues which are actually much more material than the ones facing the U.S.,” he adds.
He says until those things happen, investors will want to hold-on tight.
