Stock investors still fears the recession in our economy. It was visible on Wednesday when all stock markets lost their gains they had won in the last week. The stock markets had some profits because of the intervention governments made worldwide in their bank-systems. But now everything is gone again.
It all began when big companies of different sectors announced they had bad profits in their last quarter. The reason of those bad profits were the defensive decisions companies made to save money.
Another reason for the fell of the stock market was the lower price for oil. Since there are less demands for oil, the price dropped down. So consumers have more money to consume, but oil companies have less profit. That results in a drop of their stocks.
In the meanwhile the dollar became stronger again. The reason is that investors think the American economy will recover faster than the European.
According to me the financial crisis will still last a long time. Banks and stock markets will need time to recover. When everything stays quiet for a long period the confidence in the financial sector will return and our economy will recover. At this moment investing in stock is risky, but it could lead to large profits when the market recover. So with a lot of patience and a period with a stable economy, everything will return like it was in the past.
source:
http://www.nytimes.com/2008/10/23/business/23markets.html?scp=2&sq=stocks&st=cse
Abonneren op:
Reacties posten (Atom)
Geen opmerkingen:
Een reactie posten