Violent times for Markets
Posted by Stephen Cline on May 28th, 2010The stock markets the world over are taking a beating. They are on a roller coaster with constant variations in the stock’s value.
The American Dow Jones fell by about 300 points in one day, making it the biggest drop since two years in a single day. This is expected to continue with the debt crises looming over Europe and its inability to manage it along with the Korean War threat and the over-haul of the financial regulations in the United States have come to scare the already jittery investors of the 2008 crash.
These issues need to be resolved for the stock market to see the light of the day again and this cannot be done within a week. The signs given by the different economies are confusing for the investors and the fear that the crisis that halted Europe may spread to other countries is giving them nightmares. Despite the fact that reports suggest that the employment level in U.S. is steadily rising, the fears of investors is taking over optimism.
Many economists predict that this uncertainty will only slow down the growth but will not take the U.S. economy back into recession. But only time will tell if he markets will gain the trust of the investors back in time before it’s too late.