Stock plunges! Yet another 310 points!
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A tidal wave of worry about housing and credit markets swept over Wall Street Thursday, sending the Dow industrials tumbling 311 points in its second-biggest point loss of the year.
 Why am I not surprised?!
Wall Street suffered one of its worst losses of 2007 Thursday, leading a global stock market plunge as investors succumbed to months of worry about the mortgage and corporate lending markets. The Dow Jones industrials closed down more than 310 points after earlier skidding nearly 450!
Subprime! Subprime! Subprime!
Investors who had been able for months to largely shrug off discomfort about subprime mortgage problems and a more difficult environment for corporate borrowing finally decided it was time to sell after the Commerce Department issued another disappointing home sales report.
Calling James Bond!
While stocks plummeted, investors poured money into the safe haven of the bond market. The soaring price of Treasurys pulled yields lower, and the rate on the 10-year note plunged to 4.79 percent from late Wednesday’s 4.90 percent.
In the next few days, let me introduce you to the concept of bonds so you would know why most investors are retreating to bonds. Now, can I make a fair forecast that home prices will still come down? Don’t trust me though. I have to make this statement: Eye em not a financial advisoreeee!!!
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July 27th, 2007 at 5:53 am
I agree with your sentiment. I pulled out of stocks about a year ago. Whenever there’s a boom, a bust will follow. Plus the inflation numbers aren’t very comforting as well as fuel price. There you have it. Buy those bonds baby! Or Cd’s if you want to be ultra safe.
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