If stocks Were best in September of 1939, why are we still in a recession?

Friday, October 15, 2010

Adopted one of the slowest months on negotiation, this September benefited from an increase of 9% of the market, since reduction of 5% in August. The Dow Jones closed 7,72% higher than in August, the strongest September of 1939, when the Dow Jones closed within 13.49% higher after the announcement of US involvement in World War II caused a provision for an increase of goods MANUFACTURED and war material.

So because we are still in recession?

One answer is that stocks increased due to feelings belief amongst investors that prices will rise, instead of actual evidence in the development of the economy itself.The Federal Reserve has announced that it will stimulate the economy, if you need to purchase an additional round of US interest bills.

Stocks generally tend to grow over the last three months of the year as well.(Day traders and merchants binary options should bear in mind!)

Another answer is that although the economy symptoms develop, just as opposed to August, which showed signs of a double-dip recession.Go from worst evil does not necessarily mean the coast is clear.

Not all statistics are unproblematic.Unemployment for September was 9.7%, with loss of 39,000 jobs? housing market is almost totally static, with no new housing being built in the u.s. ordered recently. Although the stock market as a whole went in September, the Dow Jones Industrial Average fell at the end of the month by 47.33 points (44%), and the S & P 500 index was down 3.53 points (0.31%); The Nasdaq composite index lost 7.94 units (33%).

In addition, gold has increased from the previous high in $ 1,265 (S1) and reached a new all-time high last week, trading at $ 1,299. product continues to be an attractive investment such as stability of European markets remains uncertain.


View the original article here

0 comments:

Post a Comment