Is the economy heading down again or is it just panic selling?
Posted By RichC on August 8, 2011
Double dip or not? That is the question investors are facing, especially if they are holding stocks and bonds. After lunch today the markets are still seeing heavy selling … panic selling perhaps … after the S&P downgrade this weekend. Realistically though, companies and even banks are much stronger than they were back in 2008 and therefore the selling may be over done, IMHO. On the other hand, perception is reality when it comes to those who would rather hold cash, purchase high rated low returning bonds or hide out in precious metals like gold (over $1720/ounce).
NEW YORK—U.S. stocks fell sharply Monday and gold surged as investors fled from risky assets in the first activity since Standard & Poor’s downgraded the federal government’s credit rating late Friday.
The Dow Jones Industrial Average dropped 370 points, or 3.2%, to 11073 shortly after 1 p.m. Eastern time, staging a selloff that added to last week’s losses. The blue-chip measure fell by as much as 385.12 points early in the session.
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