(as of 7:10 AM PST)
Stocks are searching for a short term bottom amid turmoil and
uncertainty. The continuing drop in oil, now at $49 p/barrel has
investors questioning whether this is a good thing or a bad thing for the
economy. While it acts similar to a tax cut and is sure to spur consumer
spending, other effects include a decrease in capital spending and the possible
resulting loss of jobs. There is a huge new paradigm emerging and it
might shape the world for years to come. It's hard for the average
investor or even the expert analyst to weigh the outcome of such a huge
shift. There has been no big dent in corporate profit projections but
investor emotions are running high and when investors lose their appetite for
buying, watch out! Indexes are mixed but negative momentum continues to
prevail. Gold is inching up while interest rates are down on safe haven
buying of US Treasuries.
No comments:
Post a Comment