Stock Market News: Optimism Returns Following Bush Speech Last Night
Yesterday, the stock market was looking somewhat pessimistic. The $700 billion bailout package was hung up in Congress as lawmakers questioned certain aspects — including the power that Treasury Secretary Henry Paulson was asking for.
However, after President Bush’s speech last night, things look a little different. He offered some key concessions that lawmakers wanted, and generally expressed his desire to do whatever it takes to save Wall Street. CNN Money reports on the effect that renewed confidence is having on the stock market:
But Thursday brought optimism that a modified form of the deal could see passage, following President Bush’s speech Wednesday night and comments from congressional lawmakers.
That optimism countered the session’s negatives, including GE (GE)’s warning, a seven-year high for jobless claims, weak durable goods orders, a report that showed new home sales fell to a 17-year low, and a falling dollar.
But how long will this last. Is it just so much “confidence”? How are the fundamentals? It is important to carefully guage these items, keeping a cool head during this crisis. Now is not the time to go with the trend of the moment. If you are a long term investor, now is the time to take a deep breath, and look for bargains — as well as review the fundamentals of your portfolio.
Today’s stock market rally could give way to more pessimism tomorrow. The story could change by this afternoon and the market could head further down. It is difficult to truly predict the market in the best of times, and during volatile times like this, it is all but impossible. So use your common sense and do what you can to limit your losses and prepare for the future.
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.
Tags: stock market, stock market news, investing blog, Bush speech,
economy, investments, financial crisis
With the volatility in the US stock market — and in other investments — many are wondering if something more tangible would make a better investment.