Recent Market Sell Off
The recent market sell off that has seen the Dow Jones go from 10,700 to 10,100 is a little more than a mere regulation pull back. Attempted bounces and recoveries have failed and I can’t say I am surprised.
The economy shows little signs of recovery, and credit remains tight. Housing market has not exactly showed much improvement and now, President Obama is expected to curb spending by 17%, which will have an impact on companies that expected to receive government contracts (materials, engineering, infrastructure and energy come to mind). Inflation is still a threat even as gold prices hang around all time highs.
In other business related news, Google’s China move has seen its stock fall 12% within a few days. Apple is supposed to announce a tablet PC tomorrow, but I doubt if it will help the stock in the broader context of the market. In fact, I expect it to sell off along with the market over the next few weeks.
If you are an investor looking to buy during this sell off, be cautious. The stock market may still have a little ways to go down.
Some stocks I am looking to pick up when the time is right – Quanta (PWR), Qualcomm (QUAL) and some China names.