Stock Market Plunges
Right now, with a half hour to go to the close, the Dow is down nearly 260 points. The entire U.S. stock market has plunged today, with all sorts of concerns carrying the day as investors worry about a number of things. Even the impressive quarterly profit claimed by Bank of America
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can’t seem to get things going for the stock market.Stress tests for banks
One of the big issues right now is the fact that the Obama Administration plans to unveil stress test results for banks. This is concerning to many, who are afraid that the banks will come out looking worse than many thought. This could, in turn, result in more problems in the financial sector of the stock market. It is little surprise that Wall Street wants stress tests, which threaten to expose to a certain extent the magnitude of the problem with banks, kept hushed up.
Economic concerns
In addition to bank stress test results, there are economic concerns causing jitters on the stock market. It is clear that the economy isn’t about to make one marvelous leap to recovery. Rather, it is more likely to happen in fits and starts. With the economy recovering slowly, there will continue to be volatility on the stock market.
Stock market volatility means that you need to consider you investing plan. If you have a long-term plan, you are probably okay for the most part. You will have time to make up the losses, and improve your overall investment portfolio performance. If you are a short-term trader, however, things are different. You will want to watch the volatility carefully, and perhaps move out of some of your stock positions.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
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April 21st, 2009 at 3:08 pm
[…] the U.S. stock market plunged in a rather dramatic fashion. Dropping more than 250 points, the Dow showed great agitation. This […]