Stocks pricing in a new recession
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Aug. 4, 2011, 12:00 a.m. EDT
Stocks pricing in a new recession
Commentary: Economic numbers look terrible
By David Callaway, MarketWatch
SAN FRANCISCO (MarketWatch) --
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If the payrolls and unemployment numbers on Friday are anywhere near as bad as they are expected to be, then stocks could get even worse next week. Economists predict July’s nonfarm payrolls grew by a meager 75,000, and that the unemployment rate stood pat at 9.2%.
Anything weaker than 75,000, or a worst-case scenario of a negative number, could spur a stampede out of equities.
Some pundits claim the market is poised to bounce in coming days as the length of the latest decline has made it oversold. That’s probably right. A downgrade of the U.S. debt rating by Standard & Poor’s, removing that uncertainty, could be the catalyst, as I’ve said before. And it’s still entirely possible that stocks will come out of this summer with big gains heading into the end of the year.
But the decline in stocks these last several days is a dramatic example of what happens when a market turns.
The last eight-day decline in stocks, which came in October 2008, just a few weeks after Lehman Brothers collapsed, was equally brutal. Stocks did bounce back, but then slid again — for another five months before hitting the bottom in early March 2009.
Full story: http://www.marketwatch.com/story/stocks-pricing-in-a-new-recession-2011-08-04?dist=beforebell
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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