Review of us stock market today::Does the Stock Market Close Early Today?
Today, we are witnessing what a "crash" looks like in stock markets around the world.
While the U.S.
is off for the Dr.
Martin Luther King holiday, all over the world stock markets have crashed between 5-8%.
Unless, there is some kind of rescue from Helicopter Ben (Bernanke) we are going to see follow through tomorrow morning in our U.
S.
markets.
And even then, his credibility could be in jeopardy to save the markets tomorrow.
The worst market to have crashed the most is the one that has been really leading around the world which is India's Bombay stock exchange, closing down 7 ½%.
The main reason for this panic is the concern for the U.S economy.
The other reason is because President Bush's proposed stimulus plan is not being well received and Fed Chairman Ben Bernanke did not lower rates back in December when the markets were calling for it.
Many traders are speculating this to be the panic selling they've been waiting for.
The only problem with that is when everyone is thinking the same thing; most times it does not happen at that moment.
However, I too agree, it will happen soon or by the time the Fed meets January 30th.
And it is very possible for a month long rally to follow alleviating these severe oversold conditions in the stock market.
It will also be an opportunity for those long term investors to get out if they do not feel comfortable about holding their portfolio through this mess. Expect this downtrend to last for a while.
How long?
It is too soon to tell.
It could be several months or years.
One main reason is all the bad news is not out there on the sub prime.
We still have concerns about the losses of these bond holders and insurers of the sub prime loans.
In addition to that, we have a credit crunch. For more information on today's Global markets, click "here".
Managing your risk for your investments is more important now than ever.
Click"here" if you would like tips on how to manage your investment risks. Where does the stock market go from here?
Is the stock market in a Bear Market?
Click "here" for your answer. Just remember, it is harder to make up losses, than to make up profits.
Staying in cash is a position.
You might want to wait till you see the whites of their eyes because it could be red tomorrow.
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