Friday's stock markets took a bath yesterday. Economic news that forecast a broad retreat had traders in a serious sell state of mind. S&P 500 slid 8%; Dow Jones slid 8.2%; Stoxx Europe 600- 9.8%; Shanghai Comp. -18%; and the topper-NY crude-oil futures -20.6%. Investors were grabbing bonds, sending yields below 2% for the first time since October. WalMart announced it will be closing over 200 stores as buyers become more infatuated with internet shopping.
Analysts call the down trend a correction as the market has retreated over 10% since November. Some positive information was widely disregarded. For example, Citigroup reported its largest profit in 10 years, and its stock price fell 6.4% on Friday. Too bad for you, Citigroup, after profiting on the backs of retail customers.
Crude oil prices went south of $30. to $29.42/barrel, its lowest price in 12 years. How about that!
To confirm many investors suspicions, index mutual funds have seen a surge in money that has come into the index funds from managed stock funds. Consumers across the US are holding cash, spending less, indicating a nervousness about the future of a slow-growing US economy.
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