November Has Been A Rough Month For Wall Street
What seemed like a successful year for the stock market back in October is now a distant memory. The month of November has seen the stock market give back all of it’s gains for the year. It was the largest one month loss for Wall Street in over five years.
Financial stocks especially took a beating this month. Large write downs for a number of large firms have led many analysts to downgrade pretty much the entire financial sector. A deepening housing slump also has no end in sight.
The impact can be felt elsewhere as global investors, worried over the U.S. economy, drove down prices in stock markets around the world in massive sell offs. Oil prices also came perilously close to the $100 mark again as cold weather hits the northeast last week.
Can the market rebound in December?Â
It is difficult to say but like it always is in Wall Street, one man’s loss can be another’s gain. With such large losses for the month, savvy investors will be on the lookout for bargains. It will depend on what will investors’ outlook be for the months ahead.
These next couple of months could be pivotal for the stock market and the rest of the economy in general. Careful scrutiny will be given to economic data released next month to see if there are signs that the economy is slowing or that inflation is rising. Retail figures for the holiday shopping season will also be an important indicator of consumer confidence.
Investors will also be carefully watching for a move on the Federal Reserve’s part but most analysts believe the market has already priced in another rate cut, so if that’s not forthcoming, we could be in for a rough couple of months ahead.
