One of my relatives works in construction. Bags of material needed to make concrete have lately been piling up at his job site because no one is mixing the stuff. That's yet another sign of the slowing economy and the impact it's having on people. Today's expected dramatic selloff in the stock market is another.Investors used to gasp when they saw a triple-digit decline in the Dow Jones industrial Average. Now, as one of my friends recently noted, it's "another day at the office." It's not that people like huge declines; they have grown accustomed to living in a constant state of dread.
Today is no exception. Trading, which was limited in the pre-market, is going to be awful. Call it "Frantic Friday" or "Freaky Friday." Fear is ruling the day again. Investors are not acting rational. Blah, Blah, Blah. You have heard it all before. The only questions is why the world appears to be coming to an end today.
My colleague Peter Cohan points out that markets in Asia and Europe have been tanking. Even Canada, which largely avoided the subprime crisis, is guaranteeing up to C$218 billion in bank debt to match the bailouts offered by other countries. Remember, Canada's banks were recently recognized as being the most stable in the world. This underscores the nervousness of investors.
The U.K. economy shrank for the first time in 16 years. Yields on the 30 Year Treasury Bonds are their lowest since they began selling them in 1977. Corporate earnings are dismal and their outlooks are lackluster at best. Even a cut in oil production by OPEC does not appear to be affecting the market because demand is weak amid the economic slowdown. Even the PNC Financial Services Group Inc. (NYSE: PNC) acquisition of National City Corp (NYSE: NCC) won't do much to calm investors' fears.
Former Federal Reserve Chairman Alan Greenspan yesterday called this a "once in a century credit tsunami" during his testimony before Congress when he tried to convince people -- unsuccessfully in my view -- that he bore no responsibility for our current economic mess.
Some pundits are urging investors to buy shares, calling today's market action a "once in a lifetime" buying opportunity. The problem is most investors probably have gone through a lifetime supply of antacid and probably could not stand more excitement.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Reader Comments (Page 1 of 1)
10-24-2008 @ 10:44AM
John said...
Check out "An Unexpected Tale" at www.financialtales.com
it provides some additional perspective
10-24-2008 @ 11:17AM
Dan Barnett said...
Okay, buy Pharmacuticals as we'll all be dealing with ulcers. We'll all need Prozac or Valium.
As "Al coholic" points out, there are unsettling times.
For me I'm like the little boy Abe Lincoln say sitting by the road. Lincoln asked the boy what he was doing. The boy answered that he just stubbed his toe on a rock & he was trying to figure out what to do. "It hurts too much to laugh & I'm too big to cry"
10-29-2008 @ 2:38PM
ShareTipsInfo.com said...
Hi,
Global economies are feeling pain due to USA recession and now major outcomes are coming to prevent slowdown. Still USA is a hub of financial services and most of the banks in USA are bank corrupt now which is effecting every country.
Indian stock market is trading at the almost same levels where it was 2 years back. All gains of 2 years are now washed out in few months. Most of the Indian stocks are trading at there 52 weeks low.
Now investors are thinking that this is the right time to invest there valuable money for value buying still we suggest investors to stay away from market for few more days as still market is in bearish trend and we may witness more downfall before recovery.
For any doubt please feel free to ask us.
Thanks
Regards
SHARETIPSINFO TEAM
11-03-2008 @ 3:21PM
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11-06-2008 @ 6:13AM
ShareTipsinfo.com said...
Dear Visitors,
Now we have seen that Nifty has already cracked down alot due to recession fear. Reality sector was the worst affected in this fall. Stocks like WWIL, Unitech etc has fallen quite drastically. Investors are loosing confidence in the market. Maximum stocks are trading atleast 30% down from there 52 week high in Indian stock market .
Now one can think of buying stocks for Long term.
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1. Reliance
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Thanks
Regards
www.ShareTipsInfo.com Team
Call at:-
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+91-9899056796
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