Stocks Jump ... So Why Are You Still So Worried?
Posted May 27, 2010 11:45am EDT by Aaron Task in Investing
Related: ^DJI, ^GSPC, EEM, FXI, CLF, XLF, AGO
Stocks surged around the world Thursday, with the Dow up about 200 points in recent trading. Big gains beat the alternative, but are providing cold comfort to investors whipsawed by the recent volatility.
"It's scary because there's no liquidity in the market. There's no volume," says James Altucher, managing director of Formula Capital. "Program trading is still manipulating the markets at the open and the close. It's a scary environment to be a short-term trader."
Um...James, if the traders are scared, how do you think the rest of us feel?
Clearly there is plenty to be frightened about these days, including (but not limited to), the following:
A potential collapse of the Euro zone, which would crush European banks and trigger another global "contagion", ala 2008. (For more on why the euro matters, see: No Escape From Europe's Rubble)
Fear of a global slowdown as China tries to cool off its red-hot economy.
Fear the U.S. economy is built on a house of cards, and that the problems in the banking system were merely transferred to the public's (i.e. taxpayers') balance sheet from the banks, which are (still) being manipulated.
Rising geopolitical tension on the Korean Peninsula, as well as civil unrest in Thailand, Greece and Jamaica, among others.
An environmental catastrophe in the Gulf of Mexico; even if BP's "Top Kill" effort proves 100% successful, the Deepwater Horizon disaster will impact the region -- the source of roughly one-third of U.S. seafood -- for decades.
As you'll see in the accompanying video and subsequent segments, Altucher's answer to the above is fairly simple: Yes it's scary, but we've been through worse and there are opportunities for investors who are able to conquer their fears.
Stay calm! don't press the panick button..
Dow dips below 10,000, then bounces back
Stocks plunge early, then bounce back; Dow finishes above 10,000, but debt worries persist
Buzz up! 6 Print
Topics:Stocks
Specialist Michael Pistillo, left, and traders work on the floor of the New York Stock Exchange Tuesday, May 25, 2010. (AP Photo/Richard Drew)
Tim Paradis and Stevenson Jacobs, AP Business Writers, On Tuesday May 25, 2010, 6:24 pm EDT
NEW YORK (AP) -- The Dow Jones industrials plunged below 10,000 to their lowest level of the year Tuesday before a late-day rebound that erased most of the losses if not lingering worries about Europe's debt crisis.
The Dow dropped more than 250 points after the opening bell and stayed under 10,000 most of the day, then charged back to finish down only 22 when signals from Washington suggested that banks would not be forced to sell their lucrative derivatives units as part of financial reform. The Standard & Poor's 500 index even managed a slight gain.
Stocks plunge early, then bounce back; Dow finishes above 10,000, but debt worries persist
Buzz up! 6 Print
Topics:Stocks
Specialist Michael Pistillo, left, and traders work on the floor of the New York Stock Exchange Tuesday, May 25, 2010. (AP Photo/Richard Drew)
Tim Paradis and Stevenson Jacobs, AP Business Writers, On Tuesday May 25, 2010, 6:24 pm EDT
NEW YORK (AP) -- The Dow Jones industrials plunged below 10,000 to their lowest level of the year Tuesday before a late-day rebound that erased most of the losses if not lingering worries about Europe's debt crisis.
The Dow dropped more than 250 points after the opening bell and stayed under 10,000 most of the day, then charged back to finish down only 22 when signals from Washington suggested that banks would not be forced to sell their lucrative derivatives units as part of financial reform. The Standard & Poor's 500 index even managed a slight gain.
global market UP again Europe debt crisis being solved
Published: Tuesday May 11, 2010 MYT 7:40:00 AM
Updated: Tuesday May 11, 2010 MYT 7:45:34 AM
US, global stocks surge on US$1tril plan to ease European debt crunch
NEW YORK: Stocks rocketed to their biggest gain in a year and bond prices fell Monday after a nearly US$1 trillion plan to contain Europe's debt crisis reassured investors.
The Dow Jones industrial average rose about 405 points to its biggest advance since March 2009. Broader U.S. indexes outpaced the Dow's 3.9 percent rise.
Gains in several European markets topped 9 percent.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.54 percent from 3.43 percent late Friday.
The drop in demand for safety holdings like Treasurys signaled that investors are less afraid that Europe's debt problems will endanger a global recovery.
The European Union and the International Monetary Fund agreed to create a nearly $1 trillion rescue fund to support European nations burdened by heavy debt.
Updated: Tuesday May 11, 2010 MYT 7:45:34 AM
US, global stocks surge on US$1tril plan to ease European debt crunch
NEW YORK: Stocks rocketed to their biggest gain in a year and bond prices fell Monday after a nearly US$1 trillion plan to contain Europe's debt crisis reassured investors.
The Dow Jones industrial average rose about 405 points to its biggest advance since March 2009. Broader U.S. indexes outpaced the Dow's 3.9 percent rise.
Gains in several European markets topped 9 percent.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.54 percent from 3.43 percent late Friday.
The drop in demand for safety holdings like Treasurys signaled that investors are less afraid that Europe's debt problems will endanger a global recovery.
The European Union and the International Monetary Fund agreed to create a nearly $1 trillion rescue fund to support European nations burdened by heavy debt.
10% economic expansion highest in 10yrs
More than 10% economic expansion in first quarter for the first time in 10 years
By WONG SAI WAN
saiwan@thestar.com.my
KUALA LUMPUR: The country’s economy is likely to register growth of more than 10% in the first three months of the year – an achievement not seen in the last 10 years.
The latest economic indicators show a positive trend. Exports in March grew by 36.4% beating the market forecast of 22.4%. Imports rose by 45.3% (forecasts were around 30%).
The London-based Financial Times says: “Given Malaysia’s high exposure to trade, the numbers bode well for first quarter gross domestic product growth”.
Analysts from major banks, local and international, put the first three months’ growth at between 9.8% and 12% and they expect the trend to continue for the second quarter making it a “very good first half of the year for Malaysia.”
As a result, the analysts are also revising upwards their estimates for Malaysia’s GDP growth forecast for the year. Banks are now forecasting the annual GDP to grow by between 8% and 11% as compared to Bank Negara’s earlier estimate of between 4.5% and 5%.
“Given the recent developments in both domestic and external conditions, we are confident our 2010 forecast of 8% should be achievable,” said Ambank group chief economist Manokaran Mottain in his Economic update released here yesterday.
He also noted that besides the surge in exports, there was a marked improvement in private sector spending, especially by households. Big ticket items such as cars have seen increased sales.
According to the Malaysian Automotive Association, auto sales surged 25% year-on-year in March to 56,139 units, up from 44,896 in the same month last year.
HSBC Global Research economist Robert Prior-Wandesforde in his report entitled “From bust to boom - double-digit GDP growth in Singapore and Malaysia?” noted that the recovery of the economy came three months faster than expected.
While the Financial Times said, “Malaysia is roaring out of recession even faster than expected”.
The country’s key economic ind
By WONG SAI WAN
saiwan@thestar.com.my
KUALA LUMPUR: The country’s economy is likely to register growth of more than 10% in the first three months of the year – an achievement not seen in the last 10 years.
The latest economic indicators show a positive trend. Exports in March grew by 36.4% beating the market forecast of 22.4%. Imports rose by 45.3% (forecasts were around 30%).
The London-based Financial Times says: “Given Malaysia’s high exposure to trade, the numbers bode well for first quarter gross domestic product growth”.
Analysts from major banks, local and international, put the first three months’ growth at between 9.8% and 12% and they expect the trend to continue for the second quarter making it a “very good first half of the year for Malaysia.”
As a result, the analysts are also revising upwards their estimates for Malaysia’s GDP growth forecast for the year. Banks are now forecasting the annual GDP to grow by between 8% and 11% as compared to Bank Negara’s earlier estimate of between 4.5% and 5%.
“Given the recent developments in both domestic and external conditions, we are confident our 2010 forecast of 8% should be achievable,” said Ambank group chief economist Manokaran Mottain in his Economic update released here yesterday.
He also noted that besides the surge in exports, there was a marked improvement in private sector spending, especially by households. Big ticket items such as cars have seen increased sales.
According to the Malaysian Automotive Association, auto sales surged 25% year-on-year in March to 56,139 units, up from 44,896 in the same month last year.
HSBC Global Research economist Robert Prior-Wandesforde in his report entitled “From bust to boom - double-digit GDP growth in Singapore and Malaysia?” noted that the recovery of the economy came three months faster than expected.
While the Financial Times said, “Malaysia is roaring out of recession even faster than expected”.
The country’s key economic ind
Wall Street jumped on Monday!
Tim Paradis, AP Business Writer, On Monday May 3, 2010, 5:59 pm EDT
NEW YORK (AP) -- Investors sent stocks soaring Monday after getting a boost of confidence from the latest economic reports and Warren Buffett's defense of Goldman Sachs.
The Dow Jones industrial average rose 143 points for its biggest gain in two and a half months. The Dow and broader indexes all climbed more than 1 percent.
The market rebounded from a drop Friday after a string of welcome news eased some of the concerns that have been dogging investors. Economic reports signaled that consumer spending and manufacturing are strengthening
NEW YORK (AP) -- Investors sent stocks soaring Monday after getting a boost of confidence from the latest economic reports and Warren Buffett's defense of Goldman Sachs.
The Dow Jones industrial average rose 143 points for its biggest gain in two and a half months. The Dow and broader indexes all climbed more than 1 percent.
The market rebounded from a drop Friday after a string of welcome news eased some of the concerns that have been dogging investors. Economic reports signaled that consumer spending and manufacturing are strengthening
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