Worst Financial Quarter In 3 Years
Supposedly the stock market has ended its worst quarter in more than 3 years. The Dow Jones lost 12.5%, Standard & Poor’s dropped more than 14%, the European blue-chip stock fell 17%, the Hong Kong market fell 21.5%, and Brazilian shares fell 16%. Even the price of gold, which was being pushed heavily this year as the top dog, lost 15% of its worth in the last month. Oil’s down as well, to its lowest amount in the last year.
Market analysts seem to be everywhere on this topic, which means someone like me can have an opinion and at least one person out there will agree with me. My first thought is the same thought I’ve said at other times here, that being that the market is overinflated to begin with. Overall, trading stocks is a guessing game. The guessing game is supposed to be on how valuable or worthy a particular company is. Instead, I feel that many investors were hedging bets that the economy was going to grow in some fashion.
It has grown; just not at the levels they were all hoping for. In a story last week on CNN, it addressed whether President Obama was responsible for the financial situation we’re in now. The story concluded that the President’s actions actually got this country out of a recession, which of course kept us from moving into a depression, and that officially the economy is actually growing. But because of how bad the financial situation is here and around the world, it’s going to take a lot more effort or a miracle, and at least the second one doesn’t seem to be on the horizon any time soon. And since Republican politicians seem more interested in trying to make sure the President isn’t president anymore rather than trying to do something about the economy it looks like the first isn’t going to happen either.
Is it a good time to invest? I don’t know, and I wouldn’t want anyone basing their beliefs on anything I’d have to say; I’m not Jim Cramer. I’ll say this though; I’m not investing right now and have no immediate plans to do so either. I just feel as though things are going to have to get a little bit worse before they’re ready to turn around for a good reason. Until then, I’ll keep some dollars under the mattress.