A week ago we saw the Dow Jones close at it’s record high over 14,000 and many analysts hearlded the beginning of a new Bull Market. Today, Wall street was stunned by a selloff that caused the market to plunge back even further below last weeks highs and has analysts talking about the possible emergence of a Bear Market.
The Dow Jones industrials closed down more than 310 points after earlier dropping nearly 450 points today marking one of Wall Street’s biggest losses of 2007. Fueling the downward spiral were concerns that higher corporate borrowing costs will stifle the rapid pace of takeovers that had driven stocks higher throughout this year. Investors also felt the bite from sluggish home sales and a continuing rise in the number of subprime loans that went into default in recent months. The Commerce Department released yet another disappointing report on home sales and corporate borrowers feeling the eniornment not suitable decided to sell off to ease the discomfort cauesd by subprime mortgage problems.
The rollercoaster ride for investors this year has many people wondering how their retirement and personal investments will weather the storm. While stocks plummeted, savvy investors poured their funds into the safe haven of the bond market. however, the soaring price of T-Bills has lowered yields resulting in the 10-year plunging from 4.90 percent on Wednesday to 4.79 percent on Thursday. Admist numerous report that the US economy is on track, many investors are growing weary of the volatility this year has seen.
It is worthy to note that sharp declines in the indicies such as seen today are usually followed by rallies in the markets but the overall effect for the common investors who have their 401K’s in Mutual Funds will be felt far longer than for the broker/dealers. To most of the common investors out there, a day like today will likely take months to recover losses in one’s portfolio.
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Saturday, 3 November 2007
Dow Jones Down Over 300 Points
A week ago we saw the Dow Jones close at it’s record high over 14,000 and many analysts hearlded the beginning of a new Bull Market. Today, Wall street was stunned by a selloff that caused the market to plunge back even further below last weeks highs and has analysts talking about the possible emergence of a Bear Market.
The Dow Jones industrials closed down more than 310 points after earlier dropping nearly 450 points today marking one of Wall Street’s biggest losses of 2007. Fueling the downward spiral were concerns that higher corporate borrowing costs will stifle the rapid pace of takeovers that had driven stocks higher throughout this year. Investors also felt the bite from sluggish home sales and a continuing rise in the number of subprime loans that went into default in recent months. The Commerce Department released yet another disappointing report on home sales and corporate borrowers feeling the eniornment not suitable decided to sell off to ease the discomfort cauesd by subprime mortgage problems.
The rollercoaster ride for investors this year has many people wondering how their retirement and personal investments will weather the storm. While stocks plummeted, savvy investors poured their funds into the safe haven of the bond market. however, the soaring price of T-Bills has lowered yields resulting in the 10-year plunging from 4.90 percent on Wednesday to 4.79 percent on Thursday. Admist numerous report that the US economy is on track, many investors are growing weary of the volatility this year has seen.
It is worthy to note that sharp declines in the indicies such as seen today are usually followed by rallies in the markets but the overall effect for the common investors who have their 401K’s in Mutual Funds will be felt far longer than for the broker/dealers. To most of the common investors out there, a day like today will likely take months to recover losses in one’s portfolio.
The Dow Jones industrials closed down more than 310 points after earlier dropping nearly 450 points today marking one of Wall Street’s biggest losses of 2007. Fueling the downward spiral were concerns that higher corporate borrowing costs will stifle the rapid pace of takeovers that had driven stocks higher throughout this year. Investors also felt the bite from sluggish home sales and a continuing rise in the number of subprime loans that went into default in recent months. The Commerce Department released yet another disappointing report on home sales and corporate borrowers feeling the eniornment not suitable decided to sell off to ease the discomfort cauesd by subprime mortgage problems.
The rollercoaster ride for investors this year has many people wondering how their retirement and personal investments will weather the storm. While stocks plummeted, savvy investors poured their funds into the safe haven of the bond market. however, the soaring price of T-Bills has lowered yields resulting in the 10-year plunging from 4.90 percent on Wednesday to 4.79 percent on Thursday. Admist numerous report that the US economy is on track, many investors are growing weary of the volatility this year has seen.
It is worthy to note that sharp declines in the indicies such as seen today are usually followed by rallies in the markets but the overall effect for the common investors who have their 401K’s in Mutual Funds will be felt far longer than for the broker/dealers. To most of the common investors out there, a day like today will likely take months to recover losses in one’s portfolio.
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