28 January 2021
1300 794 893
Subscribe

Inside Markets

Switzer Daily
18 June 2009

The bears are having their overdue picnic but it’s no feast with volume only light. We are in the pullback phase and after markets have risen so strongly since early March, this had to be expected. The question is how deep will it fall?

The Dow fell 107 points or 1.2% to 8,504.
The Nasdaq dropped 20 points or 1.1% to 1,796.
The S&P 500 gave up 11 points or 1.3% to 911.

It was not all gloom, with some better than expected housing starts news and benign inflation indicators surfacing. However, industrial production readings were down which did not help market sentiment.

Not surprisingly with stocks on the block, the VIX or fear index, which measures market volatility, rose 5% to 32.5.

There are concerns that the G8 decision to reduce government stimulus could be a little premature and that could slow down any recovery. Some think we will see a W-shape recovery — down then up then down then up again — but optimists see it more as a U-shape with a longer bottom which is stretched out before the rise. The US consumer will be critical to a more optimistic scenario.

To end on a cautious but positive note, I like this survey/report from Barclays Wealth and The Economist Intelligence Unit, which found “high net-worth investors across the globe say they are seeing significant investment opportunities in the current markets, but most are still too nervous to take the plunge.”

Also a recent survey of a big number of economists found 90% expect a second-half economic recovery for the USA.

With Wall Street down, the Oz dollar is also weaker at 79.39 US cents.

Have a good day,

Peter 

Click here to subscribe to the Switzer TV channel on YouTube and keep up to date with all of our shows.

Comments
Get the latest financial, business, and political expert commentary delivered to your inbox.

When you sign up, we will never give away or sell or barter or trade your email address.

And you can unsubscribe at any time!
Subscribe
1300 794 893
© 2006-2021 Switzer. All Rights Reserved. Australian Financial Services Licence Number 286531. 
homephoneenvelopedollargraduation-cap linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram