After almost two years of silence in my adventures of blogging I am back and what a week to be back, worst in a blog where I talk about how to make money in the markets, economic issues and anything I feel is pertinent!
Yesterdays we saw a sell off only equal to the dark days of the crisis of 2008, where we saw the Dow jones index (Index of the 30 largest industrial US companies) plunging over 530 points...Ouchhh!
Why you may ask, well several reasons, but mainly is the debt problems in Europe, which started with the peripheral countries, the so called PIGS (Portugal, Ireland, Greece and Spain), but now the problems are spread to the 3rd and 4th biggest European economies, Italy and Spain!
To add to this already complex problem, now we add as well the problems with US economy, with the anecdotal fight over the debt ceiling raise, where the both main parties try to use this event to score points with their electorates and extended the debate to include deficit reduction; not that this issue was not over due, but the moment and the event the utilise to raise this debate just created more uncertainty to the markets and in the end deliver little results for the "bang" it created!?!
So, this weeks sell off was just a reflex of the investor sentiment that it is out there, coupled with the increasing evidence that the world economy is slowing down faster than previously thought, and as result OIL for example felt to $85 handle, price level not seen for a few long months, and oil normally is a leading indicator of things to come!!
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