(As of 7:15 am PST)
A sharp reversal in market
sentiment is pushing stocks lower this morning, continuing a sell-off that
picked up speed as the day wore on yesterday.
Global markets are down across the board with weak economic data weighing
on Europe and Asia markets which took their cue from the US stock slump
yesterday. The fear of a reversal of the
easy money Federal Bank policy is one of the culprits of the sagging
market. The market reaction reminds us
of how difficult it might be to wean the stock market off the steady diet of
stimulus that has been the basis of much of the last few years’ gains. Oil continues to plummet on oversupply fears
and gold is down a small amount. Long
term mortgage rates are moving up in anticipation of the Fed cutting down on
mortgage bond purchases. It seems that
market momentum has shifted abruptly to the down side after a long period of
investor complacency. Volatility is up
sharply over the last couple of days.
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