Robert CaldwellWhere's the market heading next week? Not a clue!
November 3rd 2008 02:30
I've got to say I have no idea where this market's heading. Fundamentals have been thrown out the window. Some stocks are getting killed for no reason. We have hedge funds liquidating positions because investors are making a record number of redemptions. This has created a vicious cycle of downward pressure on the market in general. October 31st was the the fiscal year end for many mutual funds which also created a lot of downward pressure as these funds sold shares at a loss for tax purposes.
After all of this you would think that shares have nowhere to go but up. Right? Well we still have this upcoming week which is chalk full of economic data which should give us a clearer picture of the state of the economy. Most importantly the employment data due at the end of the week.
I can see shares moving forward on the hopes that the worst is behind us. If the economic data comes up much worse than expected then shares will hit new lows.
Robert
After all of this you would think that shares have nowhere to go but up. Right? Well we still have this upcoming week which is chalk full of economic data which should give us a clearer picture of the state of the economy. Most importantly the employment data due at the end of the week.
I can see shares moving forward on the hopes that the worst is behind us. If the economic data comes up much worse than expected then shares will hit new lows.
Robert
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