We are only four trading sessions into the new year and the Russell 2000 — as represented by the iShares Russell 2000 Index (ETF)(NYSEARCA:IWM) — has already fallen more than 6%.
It has been an ugly start to the new year to be sure, but it might just be the beginning of a much more volatile year ahead. The U.S. economy currently finds itself in the seventh year of a cyclical expansion, and the statistics for the eighth year of a presidential election cycle are coming in weak at best. Global risk assets are at risk of some major swings this year.
With the Russell 2000 being the best equity market proxy for the U.S. economy, the IWM ETF should be closely watched as a sign for things to come.
Read my full article HERE
Download Serge’s Latest Report: Major High-Flyer Stock to Correct as much as 40% in 2016.
