Well, we went shopping! Everyone gets hysterical when the market drops and real quiet when it goes back up again. Investors are the only ones making money in this economy. Wage earners are screwed.
Yes, and 4 days late the Dow-Jones gained back all it had lost... If you had looked it one day, and then 4 days later, you would never have known it happened... This is "uncertainty" from Europe that one of their banks might become another "Lehman Brothers"...
Shall I trot out my saved quotes from a couple of years ago when the Righties on here were saying that it couldn't POSSIBLY have been Bush's fault because "the president can't control the stock market"... I think that was the mantra right before the Crash of '08, the closure of Lehman, the TARP program that Bush signed, the 800,000 jobs a month that we were losing, the near destruction of the auto industry, the near bankruptcy of AIG from all of the credit-default-swaps, ad nauseum...
Yeah - I see them happening - but wait a minute ---
Market valuation is based on the current and anticipated performance of a company.
I don't see much that alters current and anticipated performance.
What I see is panic selling - driven by a fear of factors that do not really impact stock performance. Let's take food prices, for example ---- exactly which market factors do you think will alter the long-term prospects of food purchases? (I don't see any).
The one main issue I see is confidence in the long-term value of the dollar. That said, currency valuation only comes into play when you think about international ownership of US Stock (which has risen dramatically over the past decade). I don't know where to find exact figures - but I seem to recall that historically, about 5 percent of asset ownership is foreign (today's figure is likely higher). More important, most of the foreign ownership focuses on fixed-income securities (the price of which has declined, recently).
Assume for a moment that we agree on the 5 percent figure. Now, remember that most of the recent in-flows of foreign funds come from countries with pegged currencies. In short - there isn't much risk for them - unless the invest in US assets - and spend funds on goods/services from non-pegged economies (the UAE would be in this category).
There's no fundamental reason why the US stock market should be in a precipitous decline.
