Investing and Global Finance News

Don’t Trust the Bounce

Volatility is the name of game in the markets these days. Since last Thursday the markets have swung up and down wildly.  This has confused even the most seasoned investors.  Are we heading for a crash or not?  Yes this is a crash and it is crashing for a variety of reasons, but a crash can happen because the swings down are far greater than those going up.  Take a look below at the Dow over the last 3 months:

Its clear that there is a turn downward and the bounces are not equal to the plunges. This is happening do to a few reasons such as debt issues, banking problems, crisis of confidence do to the continuous sleight of negative economic indicators, and an atmosphere of panic.

Will it turn around? Maybe, but the Dow and S&P may go far lower first.

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