Sunday, March 20, 2011

Reasons to Distrust the Latest Snap-Back Rally

Sy Harding submits:
Thankfully the news out of Japan regarding the potential for nuclear meltdowns has subsided, and global stock markets have rallied for two days in relief. Many on Wall Street are claiming the correction in global stock markets is therefore over, and it?s a buying opportunity.
But let?s think this through and not react too quickly. The human toll and economic damage in Japan was from the earthquake, not the subsequent potential problems with nuclear plants.
Let?s consider first what was going on prior to the catastrophe.
Global markets were in quite significant corrections. For instance Brazil, China, India, and Hong Kong, topped out in November and were down 12% to 17% prior to the earthquake. Markets in Europe and the U.S. peaked in mid-February and were down 3% to 4%.
So an important question is whether the factors that had global markets already topped out prior to the earthquake have

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Maria Bello Jennifer Gareis Ashlee Simpson Donna Feldman Jodi Lyn OKeefe

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