Wall Street suffered yet another big drop last week, with investors worried about the spreading fallout from the credit crisis at banks, and about a dollar that just keeps getting weaker. The Dow Jones industrial average fell more than 360 points on Wednesday, coincidently just about matching its post FOMC drop on Thursday November 1st says Betonmarket.com's Michael Wright.
A lot of familiar worries tormented investors, including comments by New York Attorney General Andrew Cuomo, about conflicts of interest within the mortgage industry, that have increased the declines among bank stocks.
Meanwhile, the dollar swooned amid speculation that China will seek to diversify some of its foreign currency stockpiles beyond the greenback. General Motors Corp further dampened sentiment by posting a record loss tied to an accounting adjustment.
The fear with a huge drop like last weeks 2% pull-back is whether it is part of a "correction", which is a 10% pullback in stock prices, or that it could be the beginning of a bear market. With the huge volatility that has swept Wall Street since the summer, and triple-digit moves in the Dow becoming commonplace, no one can be sure.
Still, the concern on the Street is that the extent of the fallout from the credit market crisis, which has led to billions of dollars in losses for major banks and investment firms, is still not yet known. With Citigroup Inc. announcing it needed to take an additional $8 billion to $11 billion in write downs, investors are becoming increasingly uneasy about stocks, and the economy as a whole.
The economy question can be potentially answered as soon as the retailers start releasing their holiday sales. These figures will show how the consumer has adjusted to the tighter credits, and much lower house values. If the consumer spent like nothing happened, then the economy is just fine. However it's the other scenario in which the consumers spend more conservatively, and a lot more discounts are needed to attract them to part with their already stretched dollar, which scares the traders the most.
With the above situation, the long-term direction of the SP500 is a murky one, with each side being able to provide both technical and fundamental support for why they are right.
With BetOnMarkets.com you can avoid having to guess which side is right. The company provides an "up or down" bet, which allows a trader to be covered on both sides of the market, as long as the market touches either trigger
within the predetermined time.
A 20-day up or down bet on the SP500, with 50 pts each way from the spot trigger, could potentially return 13%. This means you expect the S&P 500 to move 50 points in either direction over the next 20 days.
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Minus The Bear Knights
Even if you did not own "Teddy" as a kid, you most certainly had at least one stuffed animal that you carried around or described your day to when you got back home. Today, if you walk across a window shopping area and your eye catches "Teddy" looking at you from behind the glass, you will probably feel the inclination to get inside the store and touch its fur. Perhaps you will even buy the staffed animal, even if you have no kid to give it to, since some teddy bears have become expensive collector's items.
The teddy bear made its entrance in late 1902, appearing in the same year in two different countries: Germany and the United States. According to the story, while President Theodore Roosevelt was at Mississippi to help settle a boarder dispute between that state and Louisiana, his hosts wanting to please this avid hunter took him bear hunting. But since the hunting was poor, when they finally managed to capture a bear, the President's hosts invited him to shoot the poor animal. Roosevelt's refusal to shoot the unprotected animal, was illustrated by Clifford Berrymnan's in one of his cartoons, titled "Drawing the Line in Mississippi." After it's publication in the Washington Post on November 16, 1902, a number of people were inspired by the image and Morris and Rose Michtom from Brooklyn, NY, decided to make a stuffed animal, a bear, in honor of the president's actions. They named the bear "Teddy's bear," denoting the close relationship between President Roosevelt and the saved animal. Their sweet, innocent small stuffed bear became an instant hit and the Michtoms founded the first teddy bear manufacturing company in the United States, named Ideal Novelty and Toy Company.
At the same time, literally, a former art student, Richard Steiff, made a prototype of a toy bear that was based on Richard's designs. When a few months later he introduced his first bear, an American toy buyer, who was aware of the interest in teddy bears in U.S., ordered 3,000 and brought Steiff in the States offering him the opportunity of a life time.
After years of mass-production, the teddy bear comeback was initiated by a British actor, Peter Bull, who in 1969 publicly declared his love for teddy bears and his belief in this stuffed animal's importance in the emotional life of adults. Since then, collectors have been purchasing the hand-made teddy bears and in 1999, in just the United States, collectors purchased $411 million worth of teddy bears. In addition, the ongoing interest in this lovely stuffed animal by kids and adults, will keep its legend alive for years to come.
Both Karen Yap & Kadence Buchanan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Karen Yap has sinced written about articles on various topics from Investments, self improvement and motivation and Business Intelligence. Name: Mike WrightEmail: Tel: 448003762737Url: Betonmarkets.com & Betonmarkets.co.ukAddress:R. Karen Yap's top article generates over 6600 views. to your Favourites.
Kadence Buchanan has sinced written about articles on various topics from Science, Computers and The Internet and Public Relations. Kadence Buchanan writes articles on many topics including , , and. Kadence Buchanan's top article generates over 673000 views. to your Favourites.
