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It has been a wild couple of weeks on the global markets. But is the latest slide grinding to a halt...or just taking a breather before tumbling some more? And rather more importantly, what does it mean to shrewd penny stock speculators?
Wall Street recently stumbled to its worst week of the year, and global stock markets fell dramatically on concerns about rising interest rates and slowing growth. After rising almost 9% in the first four months of the year, the Dow Jones industrial average has fallen about 6.5% from a six-year high, reached May 10, 2006.
Stocks have been hurting because penny stock stockholders fear the Federal Agency might be so targeted on inflation that it ignores indications of an industrial slowdown, raises IRs too high and sends the economy into a recession.
Global stock markets were sent reeling last week after golden-tongued U.S. Federal Reserve Chairman, Ben Bernanke shocked penny stock investors in saying the Fed will continue raising interest rates to keep inflation in check.
And that call will have a direct effect on the penny stock exchange. Raised interest rates hurt penny stock costs because backers believe it will curb business expansion and company profits.
But why is inflation warming? Higher energy costs. Traders and penny stock financiers are also concerned that with the hurricane season officially under way, Gulf Coast refineries and oil production sites may be damaged again this summer and fall.
And raised rates have the capability to affect the whole economy. Financial fees on credit cards will rise. So too will rates on mortgages and mortgages, putting extra stress on home purchasers and a softening home market. Finally , it will be more costly to borrow for growth.
But does this signal doom-and-gloom for the penny market?. While the temptation to sell everything can be overpowering, some see this as an amazing opportunity. "I wouldn't be selling. I'd are buying," claimed one NY researcher.
So how precisely is this a break? It just so occurs that many firms caught in the market's downward spiral are less expensive than they used to be a few weeks gone. And as any seasoned penny stock financier will tell you, purchasing a great penny stock when it has been beaten down is not a bad way to earn income over the long run.
If you can stomach some of the volatility that is. While many blue chip financiers have problems handling the market's unpredictability...it's par for the course.
Hence "snap out of it," asserted another watcher. A month of dizzying selling has brought the markets into an interesting range. Is it really possible the markets will fall more? Completely. In fact, no penny stock is a dead cert. But one thing is totally sure : "Stocks are much less expensive now than they were 2 months ago. ".
Wall Street recently stumbled to its worst week of the year, and global stock markets fell dramatically on concerns about rising interest rates and slowing growth. After rising almost 9% in the first four months of the year, the Dow Jones industrial average has fallen about 6.5% from a six-year high, reached May 10, 2006.
Stocks have been hurting because penny stock stockholders fear the Federal Agency might be so targeted on inflation that it ignores indications of an industrial slowdown, raises IRs too high and sends the economy into a recession.
Global stock markets were sent reeling last week after golden-tongued U.S. Federal Reserve Chairman, Ben Bernanke shocked penny stock investors in saying the Fed will continue raising interest rates to keep inflation in check.
And that call will have a direct effect on the penny stock exchange. Raised interest rates hurt penny stock costs because backers believe it will curb business expansion and company profits.
But why is inflation warming? Higher energy costs. Traders and penny stock financiers are also concerned that with the hurricane season officially under way, Gulf Coast refineries and oil production sites may be damaged again this summer and fall.
And raised rates have the capability to affect the whole economy. Financial fees on credit cards will rise. So too will rates on mortgages and mortgages, putting extra stress on home purchasers and a softening home market. Finally , it will be more costly to borrow for growth.
But does this signal doom-and-gloom for the penny market?. While the temptation to sell everything can be overpowering, some see this as an amazing opportunity. "I wouldn't be selling. I'd are buying," claimed one NY researcher.
So how precisely is this a break? It just so occurs that many firms caught in the market's downward spiral are less expensive than they used to be a few weeks gone. And as any seasoned penny stock financier will tell you, purchasing a great penny stock when it has been beaten down is not a bad way to earn income over the long run.
If you can stomach some of the volatility that is. While many blue chip financiers have problems handling the market's unpredictability...it's par for the course.
Hence "snap out of it," asserted another watcher. A month of dizzying selling has brought the markets into an interesting range. Is it really possible the markets will fall more? Completely. In fact, no penny stock is a dead cert. But one thing is totally sure : "Stocks are much less expensive now than they were 2 months ago. ".
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