Fear of bear threatens US stock markets
United States, 10th October: US stock markets are in a state of fear of bear in the coming times.
Although, the stock market investors somehow managed to stay away from a short-term bearish market since the Dow Jones industrial average nosedived 20 percent after touching its peak in April this year. Yet, the fear is not yet over. Meanwhile, the Dow is still down by around 15 percent.
And the likelihood of Greek debt crisis along with the financial upheavals being witnessed in several European nations, the worries are that the stage is set for yet another global crisis any time soon.
Stock markets turbulent–No wonder, stock markets are the first to react to such a turbulent future predicted for not just the US but many other nations too. The stocks in the US markets touched a significant downfall this Monday since the year 1998 thus proving true to the investors that the current month is prone to financial ups and downs.
Despite positive affirmations by Ben Bernanke, Federal Reserve Chairman to withhold the economic slowdown, investors were left baffled by the stock market trends for the month of October. The month of September was no better for investors since it witnessed almost similar bloodier trends.
Bernanke informed Congress Monday that the Fed can control financial crisis.
According to reports by Lipper, an average loss of 23 percent has been reported in the European stock funds.
The Dow is still away from a bearish trend in the stock market, but this seems to be of no solace for US investors, especially those trading outside the nation as they are on the verge of a strong bear any time sooner or later.
Uncertainty looms large as downfall continues in European stock market--French stock market witnessed a downfall of 29 percent while the neighboring German stock exchange reported a decline of 30 percent. These two nations are going to bear the effect of a financial bailout of Portugal, Greece and Ireland.
And, fiscal steps along with joblessness are cutting back purchasing power in the euro zone member nations.
So, uncertainty is the word that sums up the character of stock market worldwide, states, Howard Silverblatt, an analyst with Standard & Poor. And he has a word of caution for investors. Don’t get swayed by bargain hunting in short-term investments although long-term investors can venture in stock trading.