I know this ain't going to be many of you favorite topic but its been the talk of the town all over United States for the past month or so. I am taking a shot at it to give my broad outlook and will move a step backwards to express my view corresponding to an ordinary individual.
American stock market(Dow Jones) skyrocketed and reached its first ever highest of all time 14000 points in history last month, courtesy of the usual suspects: takeovers, good earnings and moderate inflation. As a snowball effect, all the markets around the globe enjoyed the jump reflecting in their own exchanges which includes Europe, China and Japan.
Every rise as its downfall sneak peeking at the back door. Whether its big monarch or stock market, they have to face the truth that's the karma. Actually some call it as cycle of life. So everybody spotted for this bubble to burst because its going way too high up on the radar. Fundamentalist said that it not all good to have this peak for lot of reasons. It wasn't too long the stock market tumbles down, dropping to 12,850 after a month mainly because of the or mortgage industry breakdown. Its been volatile since then going up and down, now staying little above 13000 points.
Every downfall has its own pros and cons. Let me enumerate 3 things which makes sense from common man perspective.
1. Crude oil priced dropped and which in turn lowering the Gas prices. Gas prices all around the United States have plunged down from average price $3.25 a gallon to $2.75 a gallon. Taking an example of Houston city, it came down from $2.95 to $2.64 as of now. Its really a favorable drop during the summer for the consumers saving apx $.30 cents a gallon which is a saving of $3-$5 on full tank each time on an average. Won't you like this small savings? I do.
2. Because of the mortgage industry breakdown, lot of banks are closing their doors for lending loans and trying to huddle up on an effort to restructure their strategies. Many mortgage companies are working on tightening their loan process. It also brings lot of attention from each states to add proper security scanning on loan processes. This will avoid culprits who falsified the system to get loans and will help many consumers who have proper paper work to get thru the system to find better loans than few years ago.
Also there are m ore foreclosure homes in the market now. Even new homes can be found easily for cheaper price. Its might be right choice to buy properties taking advantage of foreclosure as an investment.
3. As many people know, Stock market is gamble and its takes on to a roller coaster ride. Thats the reason many like to stay away from it. But if you are really interested, its the good time to jump for the fun ride whether you are novice or veteran. Most of the stocks are priced way less, hitting their all time low. Its poised to go up and if you can buy some good stocks right now at low price, you are bound to make a good profit in the future when the market rallies back up.
As per my experience, tracking the stock market is not an easy task and it takes lot of time. Every other business channel convey different stories and experts opinions vary according to their expertise. In the few weeks, I have seen some quote, "it might be start of the recession" where as others say, "the markets went high and now it came down to correct itself". Its all part and parcel of the game.
Federal Reserve Chairman is keeping a close eye on the market than usual and will jump on it when the situation gets worse. For now, they stated that Consumer market is relatively good and economy is moving on a slower face. So no action needed from their side on any rate changes. Whatever it may be, as we all are aware stock market drives the countries economy to a large extent. The raise and fall eventually going to create a friction in all sides which is part of the market cycle but if its all for good reasons thats all it matters.
American stock market(Dow Jones) skyrocketed and reached its first ever highest of all time 14000 points in history last month, courtesy of the usual suspects: takeovers, good earnings and moderate inflation. As a snowball effect, all the markets around the globe enjoyed the jump reflecting in their own exchanges which includes Europe, China and Japan.
Every rise as its downfall sneak peeking at the back door. Whether its big monarch or stock market, they have to face the truth that's the karma. Actually some call it as cycle of life. So everybody spotted for this bubble to burst because its going way too high up on the radar. Fundamentalist said that it not all good to have this peak for lot of reasons. It wasn't too long the stock market tumbles down, dropping to 12,850 after a month mainly because of the or mortgage industry breakdown. Its been volatile since then going up and down, now staying little above 13000 points.
Every downfall has its own pros and cons. Let me enumerate 3 things which makes sense from common man perspective.
1. Crude oil priced dropped and which in turn lowering the Gas prices. Gas prices all around the United States have plunged down from average price $3.25 a gallon to $2.75 a gallon. Taking an example of Houston city, it came down from $2.95 to $2.64 as of now. Its really a favorable drop during the summer for the consumers saving apx $.30 cents a gallon which is a saving of $3-$5 on full tank each time on an average. Won't you like this small savings? I do.
2. Because of the mortgage industry breakdown, lot of banks are closing their doors for lending loans and trying to huddle up on an effort to restructure their strategies. Many mortgage companies are working on tightening their loan process. It also brings lot of attention from each states to add proper security scanning on loan processes. This will avoid culprits who falsified the system to get loans and will help many consumers who have proper paper work to get thru the system to find better loans than few years ago.
Also there are m ore foreclosure homes in the market now. Even new homes can be found easily for cheaper price. Its might be right choice to buy properties taking advantage of foreclosure as an investment.
3. As many people know, Stock market is gamble and its takes on to a roller coaster ride. Thats the reason many like to stay away from it. But if you are really interested, its the good time to jump for the fun ride whether you are novice or veteran. Most of the stocks are priced way less, hitting their all time low. Its poised to go up and if you can buy some good stocks right now at low price, you are bound to make a good profit in the future when the market rallies back up.
As per my experience, tracking the stock market is not an easy task and it takes lot of time. Every other business channel convey different stories and experts opinions vary according to their expertise. In the few weeks, I have seen some quote, "it might be start of the recession" where as others say, "the markets went high and now it came down to correct itself". Its all part and parcel of the game.
Federal Reserve Chairman is keeping a close eye on the market than usual and will jump on it when the situation gets worse. For now, they stated that Consumer market is relatively good and economy is moving on a slower face. So no action needed from their side on any rate changes. Whatever it may be, as we all are aware stock market drives the countries economy to a large extent. The raise and fall eventually going to create a friction in all sides which is part of the market cycle but if its all for good reasons thats all it matters.
Do you Agree?!
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