It's been a wild and wooly couple of weeks on the international stock markets. But is the recent slide grinding to a halt...or just taking a breather before tumbling some more? And more importantly, what does it mean to astute penny stock investors?
The Street latterly stumbled to its worst week of the year, and worldwide exchanges dropped seriously on fears about rising rates and slowing expansion. After rising virtually 9% in the 1st 4 months of the year, the Dow economic average has fallen about 6.5% from a six-year high, reached May ten, 2006.
Stocks have been hurting because penny stock stockholders fear the Federal Agency might be so targeted on inflation that it ignores indications of an industrial slowdown, raises IRs too high and sends the economy into a recession.
World markets were sent reeling last week after golden-tongued U.S. Fed Reserve Boss man , Ben Bernanke surprised penny stock stockholders in exclaiming the Federal Agency will continue raising IRs to keep inflation under control.
And that call will have a direct effect on the penny stock exchange. Raised interest rates hurt penny stock costs because backers believe it will curb business expansion and company profits.
But why is inflation heating up? Higher energy costs. Traders and penny stock investors are also worried that with the hurricane season officially under way, Gulf Coast refineries and oil production sites could be damaged again this summer and fall.
And higher interest rates have the ability to affect the entire economy. Finance charges on credit cards will rise. So too will rates on mortgages and home equity loans, putting additional pressure on homebuyers and a softening housing market. Ultimately, it will cost more to borrow for expansion.
But does this signal doom-and-gloom for the penny stock market? Au contraire. While the temptation to sell everything can be overwhelming, some see this as a great opportunity. "I would not be selling. I would tend to be buying," said one New York analyst.
So how precisely is this a break? It just so occurs that many firms caught in the market's downward spiral are less expensive than they used to be a few weeks gone. And as any seasoned penny stock financier will tell you, purchasing a great penny stock when it has been beaten down is not a bad way to earn income over the long run.
If you can stomach some of the volatility that is. While many blue chip speculators have trouble handling the market's unpredictability...it's par for the course.
Hence "snap out of it," claimed another watcher. A month of dizzying selling has brought the markets into an fascinating range. Is it feasible the markets will fall more? Fully. In fact, no penny stock is a sure bet. But one thing is absolutely certain : "Stocks are much less expensive now than they were 2 months ago.
The Street latterly stumbled to its worst week of the year, and worldwide exchanges dropped seriously on fears about rising rates and slowing expansion. After rising virtually 9% in the 1st 4 months of the year, the Dow economic average has fallen about 6.5% from a six-year high, reached May ten, 2006.
Stocks have been hurting because penny stock stockholders fear the Federal Agency might be so targeted on inflation that it ignores indications of an industrial slowdown, raises IRs too high and sends the economy into a recession.
World markets were sent reeling last week after golden-tongued U.S. Fed Reserve Boss man , Ben Bernanke surprised penny stock stockholders in exclaiming the Federal Agency will continue raising IRs to keep inflation under control.
And that call will have a direct effect on the penny stock exchange. Raised interest rates hurt penny stock costs because backers believe it will curb business expansion and company profits.
But why is inflation heating up? Higher energy costs. Traders and penny stock investors are also worried that with the hurricane season officially under way, Gulf Coast refineries and oil production sites could be damaged again this summer and fall.
And higher interest rates have the ability to affect the entire economy. Finance charges on credit cards will rise. So too will rates on mortgages and home equity loans, putting additional pressure on homebuyers and a softening housing market. Ultimately, it will cost more to borrow for expansion.
But does this signal doom-and-gloom for the penny stock market? Au contraire. While the temptation to sell everything can be overwhelming, some see this as a great opportunity. "I would not be selling. I would tend to be buying," said one New York analyst.
So how precisely is this a break? It just so occurs that many firms caught in the market's downward spiral are less expensive than they used to be a few weeks gone. And as any seasoned penny stock financier will tell you, purchasing a great penny stock when it has been beaten down is not a bad way to earn income over the long run.
If you can stomach some of the volatility that is. While many blue chip speculators have trouble handling the market's unpredictability...it's par for the course.
Hence "snap out of it," claimed another watcher. A month of dizzying selling has brought the markets into an fascinating range. Is it feasible the markets will fall more? Fully. In fact, no penny stock is a sure bet. But one thing is absolutely certain : "Stocks are much less expensive now than they were 2 months ago.
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