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February 27, 2007
It's a Bloody Day For Wall Street
by Jack Lee
Afternoon update: Tues. Wall Street continues to slide losing almost 500 points in the closing hour which represents a loss of about 190 billion dollars in equity.
What does this drop in the stock market signal? Nothing good, thats for sure, but you can't tell a heck of a lot from one day. Analysts worries center around the recent declines in retail sales, home prices and the 9% drop in the Chinese market. We have been hitting record highs in the recent months and profit taking is too be expected when the market turns south as it has today, which exacerbates an already bad situation. Rarely has the market made such dramatic plunges without a prolonged down turn. The DOW has only closed with a 500 point loss 3 times in history.
However, some risk takers might consider this a buying opportunity for bargain priced stocks and this could reverse some of the big losses in the closing minutes...but, the truly smart investors are going to wait to see if those bargain stocks don't become even better buys in the days to come!
It was interesting to watch China's largest internet company China.com hit the skids. Symbol "CHINA" was trading at 8.87 at 3:19PM and has shed -1.44 -13.97% on a volumn of 9,944,254.
UPDATE: Dow closed down 416 points.
Posted by Post Scripts at February 27, 2007 12:10 PM
Comments
Jack, I've heard all kinds of explanations for this...the Chinese market and a slight adjustment to the 4th quarter, etc. But, the one thing that keeps gnawing at my brain is the remark by Alan Greenspan that we could be heading for recession. What bothers me isn't the prediction...it's the question of his purpose in making this statement publicly. He is no longer the "go to guy". It's a little squirrely if you ask me.
Posted by: Tina at February 28, 2007 08:42 PM