Market Jitters
Thursday, August 30th, 2007Subprime mortgage fallout fears have brought the market off of it’s July highs, which saw the Dow in the neighborhood of 14,000. Since then, it’s been like a kiddy ride at a carnival… up, down, up, down, down down… you see where this is going. The DOW and NASDAQ are both 5% off their summer highs. But, is it all really Doom and gloom for the markets? With pressure on Bernake to cut rates and the looming fear that the falling of the housing market will topple the whole row of dominos, I think its likely that we’ll see another rate cut from the Fed before the end of the year. Whether this will signal the bottom of the market and redirect the economy in the long run is doubtful. In the end, the market needs to truly and completely correct from the real estate bubble that has built up over the past few years. (more…)