Financial News Story of the Day – DJIA Goes Red
The DJIA ended the day with a loss and caused the index to go negative into red territory for the year, losing 247 points and ending at 11,397. The main cause for the drop? It’s Europe again. This time, Germany stated quite firmly that it did not have a plan and the European countries would not be solving any of their debt issues by the end of October as many predicted (source: MarketWatch.com).
Excerpt: “It was the worst day for the major indexes since Oct. 3, when a sharp tumble by bank shares led stocks to their lowest closing levels in more than a year. The Dow and Nasdaq are down more than 1% year to date after turning positive for 2011 on Friday. The S&P 500 is down 4.5% for the year.
For every stock rising Monday, four fell on the New York Stock Exchange, where about 900 million shares traded hands. NYSE composite volume was 3.8 billion.”
Personal Finance Post of the Day – How to Invest Against the Crowd
One of my favorite sites, the Motley Fool, discusses how you can beat the crowd with your investment choices. In short, group thinking and knee jerk reactions are ill-advised compared to research and the confidence to follow through on your picks (source: MotleyFool.com).
Excerpt: “Nothing’s harder than bucking the trend, especially when, at first, the herd seems to be right and you’re on the losing end of your trades. But to become a better investor, you have to have the confidence, conviction, and discipline to stick with your views until hard evidence refutes them. If you can do that, you’ll have accomplished one of the hardest aspects of expert investing.”
Daily Finance Summary – Markets Down on Europe Debt…Again
All major U.S. stock indexes were down today thanks to growing concern over Europe’s debt issues. What surprises me is that people have been convinced that somehow the American debt crisis is no longer an issue and is already priced into the current stock price. A major sell-off catalyst can come from Europe or a major American company failure at any time. Invest accordingly.
Stocks, Metals and Mortgage Rates
Dow Jones: 11,397 (-247) you lost -2.13%
S&P 500: 1,201 (-24) you lost -1.94%
Gold: $1,627 (-0.25%) you lost -$4
Silver: $31.68 (-0.14%) you lost -0.44%
30-Year Fixed Mortgage Rates: 4.13% (-0.08)
15-Year Fixed Mortgage Rates: 3.44% (-0.05)
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