Why global tur­moil hasn’t sunk US mar­kets. Yet.

The Covington News - - THE WIRE -

NEW YORK (AP) — Europe ap­pears on the brink of another re­ces­sion. Is­lamic mil­i­tants have seized Iraqi ter­ri­tory. Rus­sian troops have massed on the Ukraine border, and the re­sult­ing sanc­tions are dis­rupt­ing trade. An Ebola out­break in Africa and Is­rael’s war in Gaza are con­tribut­ing to the gloom.

It’s been a grim summer in much of the world. Yet in­vestors in the United States have largely shrugged it off — so far at least.

A big rea­son is that five years af­ter the Great Re­ces­sion of­fi­cially ended, the U.S. econ­omy is show­ing a strength and dura­bil­ity that other ma­jor na­tions can only envy. Thanks in part to the Fed­eral Re­serve’s ul­tra-low in­ter­est rates, em­ploy­ers have ramped up hir­ing, fac­to­ries have boosted pro­duc­tion and busi­nesses have been mak­ing money.

All of this has cush­ioned the U.S. econ­omy from the eco­nomic dam­age abroad. And in­vestors have re­sponded by keep­ing U.S. stocks near all-time highs. Not even re­ports Fri­day of a Ukrainian at­tack on Rus­sian mil­i­tary ve­hi­cles un­nerved in­vestors for long, with blue chip stocks re­gain­ing nearly all their mid­day losses by the close.

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