This last week the market was pretty crazy – or was it? Some would say yes and some, like me say no. I have not bought or sold a stock in a couple of months but I do still track the market overall (I have to as people still ask me how it works). Actually the market works rather simply and with enough diligence, the average person can figure out how the market works. In simpler terms, the market is a giant Las Vegas. The market is really just gambling. Anyway, what happened in the market this week? Actually the market is very sensitive becuase simply, the average Joe invests in the market therefore, the market (the average Joe) reacted to the unknown. In other words, the market did what (in my opinion) it is suppossed to do every now and then – correct itself. Read this interesting report from CNN Money.com.
In all, the Dow ended the week down 1.5%, a relatively modest percentage since the blue chips had been down as much as 7% earlier in the week. Stocks are still on pace for one of their worst months in since the financial crisis however.
At the close, the Dow Jones industrial average added 126 points, or 1.1%, to end the week at 11,269. The S&P 500 added 6 points, or 0.5%, to 1,179 and the Nasdaq composite increased 15 points, or 0.6%, to 2,508.
It appears, at least for the moment, the fear among investors that Europe is heading toward a financial catastrophe and the U.S. is slipping into another recession has abated. The Dow is up more than 600 points from the low it hit on Tuesday.
Read more at CNNMoney.com