japan small cap stocks
It was a wild and wooly couple of weeks in international securities markets. But the recent slide grinding to a halt … or just taking a breather before falling a little more? And more importantly, what does it mean for the astute penny stock investors?
Wall Street recently stumbled to its worst week year, global equity markets fell dramatically on concerns about rising interest rates and slowing growth. After to climb nearly 9% in the first four months of the year, the Dow Jones industrial average has fallen 6.5% from a maximum of six years, arrived 10 May 2006.
Stocks have been in crisis because penny stock investors fear the Fed could be so focused on inflation that ignores the signs of an economic slowdown, raises interest rates too high and send the economy into recession.
Stock markets worldwide were sent last week after of the golden tongue winding Chairman U.S. Federal Reserve Chairman Ben Bernanke surprised penny stock investors say that the Fed will continue raising interest rates to keep inflation under control.
And that decision will have a direct impact on the penny stock market. Higher interest rates prices damage cent of the shares because investors believe that slowing economic growth and corporate profits.
But why is inflation warmer? The higher energy costs. Penny traders and stock investors are also worried that the hurricane season officially underway, refineries on the Gulf Coast and oil production facilities could be damaged again this summer and fall.
And higher interest rates have the ability to affect the entire economy. Finance charges on credit cards will increase. So will mortgage rates and loans secured by mortgage, putting additional pressure on home buyers and a housing market softening. Ultimately, it will cost more a loan for expansion.
But this destination of the signal-and-shade for the penny stock market? On the contrary. While the temptation to sell everything what can be overwhelming, some see this as a great opportunity. "I would not be selling. I tend to buy," said an analyst in New York.
So how exactly is this an opportunity? What happens is that many companies caught in the downward spiral of the market are cheaper than they were a few weeks ago. And like any seasoned investor will tell Penny common, buying a big penny stock has been beaten down when not a bad way to make money in the long term.
If you can stomach some of the volatility that is. Blue chip, while many investors are struggling to handle the unpredictability of the market … is part course.
Thus, "out of it," said another observer. One month from the sale of dizzying market has brought in an attractive range. Is it possible that markets fall further? Absolutely. After all, no penny stocks is a sure thing. But one thing is certain: "Stocks are much cheaper now than two months ago. "
A seasoned investor with a keen interest in international business and current affairs, John Whitefoot has been working alongside Peter Leeds for the last several years. With over ten years experience in the investing community, Whitefoot is devoted to uncovering the news, trends and ideas that shape penny stocks on a daily basis.
QualityStocks Daily Video 12/19/2007
