Financial

Monday, January 21, 2008

Time would heal the U.S. stock market
by Daniela Simkova


The predictions of the U.S. analysts are coming true. Wall Street is still falling down as for the stock market. There is no economic news, any kind of data that something can help to improve the situation. Not even the Federal Reserves or government can do something for the stock market. All of the parties came to the same result. The stock market can heal only a time. Investors are afraid to put their money into the stocks. They are not confident and the worst thing is that noone can assure them safe investment. Maybe when Wall Street has a sence of how the first quarter is going and how the forecasts for the last quarters are, the investors will put their money in. Arthur Hogan, a chief market analyst at Jefferies & Co. Expressed his attitude towards the bad news on the stock market: „We've baked in a lot of bad news. But we don't know the magnitude of the bad news yet. We don't know if we've overdone it. I don't think there's any combination of things next week that will necessarily turn things around." Mr. Hugh Johnson, a chief investment officer of Johnson Illington Advisors said: „The real key question is not whether there's going to be an economic recession. It's not when the economic recession is going to end. It's when is the earnings recession going to end?" Some strategists think that maybe the end of this quarter will sort out all the things over the stock market.
by Daniela Simkova
for PocketNews (http://pocketnews.tv)

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