It's been a wild and wooly couple of weeks on the international stock markets. But is the latest slide grinding to a halt...or just taking a breather before tumbling some more importantly, what does it mean to shrewd low-priced stock speculators?
Wall Street latterly stumbled to its worst week of the year, and worldwide exchanges dropped dramatically on concerns about rising rates and slowing growth. After rising almost 9% in the 1st four months of the year, the Dow Jones economic average has fallen about 6.5% from a six-year high, reached May 10, 2006.
Stocks have been ailing because low priced share financiers fear the Fed may be so focused on inflation that it ignores signals of an economic slowdown, raises rates too high and sends the economy into a recession.
Global exchanges were sent reeling last week after golden-tongued U.S. Fed 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 result on the penny stock market. Higher interest rates hurt low-priced share prices because financiers believe it will curb commercial expansion and corporate profits.
But why is inflation warming up? Higher energy costs. Traders and penny stock stockholders are also concerned that with the hurricane season officially under way, Gulf Coast refineries and oil production sites could be damaged again this summer and fall.
And raised rates have the capability to affect the entire economy. Finance charges on cards will rise. So too will rates on mortgages and house loans, putting further force on house buyers and a softening housing market. In the final analysis it will be more costly to borrow for expansion.
But does this signal doom-and-gloom for the low-priced stock market? Au contraire. While the enticement to sell everything can be overpowering, some see this as a superb opportunity. "I wouldn't be selling. I would have a tendency to be buying," claimed one Long Island researcher.
So how precisely is this a possibility? It just so happens that many firms caught in the market's downward spiral are cheaper than they were a few weeks back. And as any seasoned low-priced share financier will tell you, purchasing a great low priced stock when it has been beaten down isn't a bad way to earn income over the long run.
If you can stomach some of the volatility that is. While many blue chip investors have trouble handling the market's unpredictability...it's par for the course.
Hence "snap out of it," said another watcher. A month of disorientating selling has brought the markets into a tasty range. Is it feasible the markets will fall more? Definitely. In fact , no low priced share is a sure thing. But one thing is certain: "Stocks are much less expensive now than they were 2 months ago. ".
Wall Street latterly stumbled to its worst week of the year, and worldwide exchanges dropped dramatically on concerns about rising rates and slowing growth. After rising almost 9% in the 1st four months of the year, the Dow Jones economic average has fallen about 6.5% from a six-year high, reached May 10, 2006.
Stocks have been ailing because low priced share financiers fear the Fed may be so focused on inflation that it ignores signals of an economic slowdown, raises rates too high and sends the economy into a recession.
Global exchanges were sent reeling last week after golden-tongued U.S. Fed 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 result on the penny stock market. Higher interest rates hurt low-priced share prices because financiers believe it will curb commercial expansion and corporate profits.
But why is inflation warming up? Higher energy costs. Traders and penny stock stockholders are also concerned that with the hurricane season officially under way, Gulf Coast refineries and oil production sites could be damaged again this summer and fall.
And raised rates have the capability to affect the entire economy. Finance charges on cards will rise. So too will rates on mortgages and house loans, putting further force on house buyers and a softening housing market. In the final analysis it will be more costly to borrow for expansion.
But does this signal doom-and-gloom for the low-priced stock market? Au contraire. While the enticement to sell everything can be overpowering, some see this as a superb opportunity. "I wouldn't be selling. I would have a tendency to be buying," claimed one Long Island researcher.
So how precisely is this a possibility? It just so happens that many firms caught in the market's downward spiral are cheaper than they were a few weeks back. And as any seasoned low-priced share financier will tell you, purchasing a great low priced stock when it has been beaten down isn't a bad way to earn income over the long run.
If you can stomach some of the volatility that is. While many blue chip investors have trouble handling the market's unpredictability...it's par for the course.
Hence "snap out of it," said another watcher. A month of disorientating selling has brought the markets into a tasty range. Is it feasible the markets will fall more? Definitely. In fact , no low priced share is a sure thing. But one thing is certain: "Stocks are much less expensive now than they were 2 months ago. ".
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