wealth impact

The stock market decline will have a negative impact on economy. I would be very cautions on Canadian market because of exposure to commodities. I read that Chinese steel companies for the first time this year lowered their steel prices. This is not a good sign for mining companies. U.S. Market may perform better in short term because of lower energy price, low interest rates and continuous of deficit spending. But over long term, there are many negatives: higher taxes, higher energy prices because of supply situation in deep sea drilling, and higher interest rates due to budget pressure.