Eric Fornell is an investment banking executive with over 20 years of experience in some of the biggest securities companies. Eric Fornell is now vice chairman of investment banking and capital markets at Wells Fargo Securities, where he provides strategic advice to clients.
Recently the market has shown volatility which reminds investors of the 2008 stock market crash. However, Wells Fargo Securities technical analysis head Gina Martin Adams compares it a 1998 correction that wasn't as dramatic.
According to Adams, the economic situation at the moment is very similar to 1998, considering the increasing buying power of the US dollar, the marked drop in oil prices, and the problems being encountered by emerging markets. In 1998, the stock market dropped by almost 20 percent. Adams believes that despite the similarity in the domestic economic atmosphere, the correction this 2016 might not be too extreme and would at most result to a drop of around 8 to 10 percent.
Recently the market has shown volatility which reminds investors of the 2008 stock market crash. However, Wells Fargo Securities technical analysis head Gina Martin Adams compares it a 1998 correction that wasn't as dramatic.
According to Adams, the economic situation at the moment is very similar to 1998, considering the increasing buying power of the US dollar, the marked drop in oil prices, and the problems being encountered by emerging markets. In 1998, the stock market dropped by almost 20 percent. Adams believes that despite the similarity in the domestic economic atmosphere, the correction this 2016 might not be too extreme and would at most result to a drop of around 8 to 10 percent.