Yesterday's brief respite from the week's jarringly negative performance is already forgotten as stocks opened sharply negative this morning. In hindsight it appears that Wednesday's mild gain was a nothing more than a bounce off lows set in the first two days of the week. Negative momentum is picking up speed. Banking issues out of Portugal seem the key to this market drop, but I think a broader argument is that Federal Reserve Bank minutes showed that bond buying would stop in October, a reminder that economic stimulus cannot go on forever. There is a definite 'risk-off' scenario in place with the US dollar scoring big gains along with gold, both considered safe haven investing. Perhaps as earnings season picks up speed we will see some positive surprises to stem the downward tide. Oil continues to trade lower as more supplies from troubled regions hit the market.
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