Thursday, September 25, 2014

Is the Sky Falling or Are We Getting Back to Financial Norm?

(  Stocks slammed by global worries; Dow off 250 pts.  U.S. stocks declined on Thursday, a day after the S&P 500 jumped the most in more than a month, as Wall Street weighed reports that Russia was considering a measure that would let its courts seize foreign assets. "To us that would signal a threat from the Kremlin that the Russian-U.S.-Europe conflict economically might take a turn for the worse, should it be enacted. They are signaling that unless concessions or negotiations take place, we're prepared to do this," said Jim Russell, senior equity strategist for US Bank Wealth Management. Reuters reported the draft law, submitted to Russia's parliament on Wednesday by a pro-Kremlin deputy, would also allow state compensation for those whose assets were taken in foreign jurisdictions.


 (CERR Investiments).  Do you really think the markets are declining because Russia threatens to take foreign assets? Well Russia has foreign assets. What do you think the world would do to their things.  Small Caps stocks and now Large Cap stocks are getting hit. Reit Funds are getting slammed!

(The Street). All 10 sectors of the S&P 500 were in the red, with most posting a drop of more than 1%. The S&P 500 information technology sector was bearing the brunt of the negative action as both Apple andYahoo! (YHOO_) tumbled. The iPhone maker was down 3.53% after pulling its iOS 8.0.1 updatemere hours after releasing it. (This could turn your phone into a brick!). Yahoo! fell 1.76% after revealing that it agreed to a one-year lock-up period that restricts the sale of the remaining ordinary shares it owns in Alibaba (BABA_) .  The overall declines in equities on Thursday were mainly attributable to end-of-quarter profit taking, thinner volumes due to the Jewish holidays, and the unwinding of trades that were driven by dovish Federal Reserve speak during the prior session.

 (CERR Investiments). End of quarter profit taking to say the least Street0! Big companies are getting ready for the sweet free money to end in October. As long as Feds keep bank deposits by ordinary individual near zero interest rates companies will invest because there is no other place to go if you want to make money.  However the small investor is the key. The small investor is not going to forget 2008 and all the ponzy schemes that went on. Until the markets seem fair, bank deposit rates go back up, and financial regulations are again keeping insider traders from stealing your money, markets will stall.