Chris Cantell Discusses Markets: Economy like an April weather by Barbora Misakova

Situation in economy reminds me an April weather. When you wake up in the morning the sun is shining, birds are singing and everything looks like it could be a really nice and sunny day. So you just take some clothes and go to the work. Feeling fine and safe. The sun is shining, so I don't have to worry about anything. Just enjoying the day. But as soon as you are in the office, the whole situation changes! The sun suddenly disappears somewhere in the dark clouds, the whole sky is gray, wind is blowing like in the autumn and you are more than sure that it will start raining soon. And you are right. In few minutes it is raining fast. The weather is just unstable. You cannot rely on anything. The economy, especially after the last crisis on the Wall Street is just like a weather. You never know what will happen in few hours, or even tomorrow. Bright and sunny day at the market can change immediately without any previous warning. And as we are not prepared on it, we are hit by main force.

After a very short optimistic period, the major indexes on the Wall Street fell again. And this time the stocks surprised us again. The fall was bit unexpected, especially in such a quick style. While last week everything looked stable and some of the indexes were also rising, now lot of the major indexes have problems. For example the Dow declined by 2.43 percent, The Standard & Poor's 500 index fell 2.31 percent and Bond declined by 4.12 percent. Little problems occur also in the technology sector where Nasdaq composite index fell 1.97 percent. Only a jump in Amazon.com Inc. shares helped to improve the whole situation a bit. Washington Mutual Inc. fell 62 cents, Citigroup Inc. fell 9.8 percent, Merrill Lynch & Co. fell by 14 percent, Wachovia Corp. declined by 11 percent and I could continue. But I don't clearly understand, why all those “market people” are terrified, when analysts are saying, that so far “second-quarter earnings reports have been better than many investors expected.” Hey people, lets look at it in positive way. Everything wrong is happening for something good.

related story: http://news.yahoo.com/s/ap/20080724/ap_on_bi_st_ma_re/wall_street;_ylt=Ag6xOSW5MXhvxUK9J_bJ9N.s0NUE

by Barbora Misakova for PocketNews (http://pocketnews.tv)

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posted by Lucia Adamova