Moments ago the Dow reverses course and goes negative. Investors are continuing their sell off after Ben Bernanke announced that rates would remain unchanged through 2013. Investors have been on edge since the S&P has downgraded the US on Friday. Yesterday’s 6.66% drop was the 12 largest drop since WW2.
Economy the Real Factor
Many analysts see a composite of problems causing investor flight. Many of these issues are connected with the weaker than hoped economic recovery. This can be seen in the chronic 9% unemployment, the slowing of production, and decline in exports. Dan Greenhaus from BTIG said on Yahoo’s Daily Ticker: “To the extent that we are not going into recession, history is fairly clear to quite clear: buying at current levels given the speed and rapidity of the decline, investors are likely to be rewarded.” Yet he insisted that this only applies if the US is not going into a recession.
Time will tell…
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