AMERICAN EXCEPTIONALISM

The US stock market has completely recovered from August’s global market meltdown

Remember that global market meltdown that started in mid-August? When China made a small tweak to its currency, ruined everything for everybody, and sent the S&P 500 into a correction?

Well, you can forget all that now. The US benchmark has clawed back all those gains, and is up around 2.3% for the year.

It’s really quite an accomplishment. Consider: Most other major stock indices around the world are still struggling to get back to where they were before the slump, especially China, which might have bigger problems to deal with.

Not a lot has fundamentally changed about the hardy US economy in that time, from unemployment to interest rates. Back in September the Federal Reserve said, “Recent global economic and financial developments may restrain economic activity.” But by October those concerns had slipped into the background, where they’re simply being monitored.

Though the sudden rally hasn’t been good for everybody chasing a quick profit, it’s certainly good for most 401(k) accounts.

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