Desperate markets reacted positively during last weekend, after a massive rally, with two consecutive up days to end the week on a positive note, the Dow has gained 11.3 percent on weekly basis to close above 9300 levels, its best one-week percentage gain since October 1974, despite of the worst GDP data. Advance annualized reading of US third quarter GDP fell at a pace of 0.3 percent. Further, markets ended little changed on Monday’ a day before election.
Investors follow cautious approach’ while considering long positions before the election result. Many questions of the investors remain unanswered like’ Have the markets bottom out? Or How come the recent economic situation be stabilized and what are the strategies new government will follow to make sure that present crisis situation never emerge again?
Also investors (Including few experts those advocating buying particular stocks) holding stock positions expecting a post election rally with the new government formation. Stock markets are the pool of large number of funds that directly or indirectly related to the common man and many from them not even take active part in financial markets but get hurt as badly as the active investors or traders. It hurts beyond doubt that the foolishness of the very few people in authority has ruined the investment and finances of the large masses.
Few voices can be heard that irrespective of the fact' which party comes to power, new government comes out with a policy to make the savings compulsory. This sounds little awry in the present conditions, Now the question arises’ As everybody knew that the savings issue has been prevailing from long time back, where were those decision makers and politicians when there was right time and right conditions? For now, the financial crisis already restricted the day-to-day expenses of average families and the high unemployment data with companies shunting their workforce in view of lower guidance and future outlook makes this a grave situation.
While understanding the present scenario, new Government surely comes up with strategies suitable for the present situations and markets will definitely respond positively to fresh and practicable approach regarding the present economic situation, till then keep your fingers crossed.
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