Last week's stock market euphoria evaporated. markets are giving back gains from the enormous rally on global recession fears. China, 4th largest economy in the world is slowing badly. Exports are down, many of the exports go to US retailers. They are hoping to stimulate the home economy to prop up business. Any plans they have are not clear, they must be making it up as they go along. Japan, the 2nd largest economy in the world is already in a deep recession.
Dow is down 400, decliners over advancers 7-1 & NAZ dropped 80 in what is turning into an ugly market environment. The Alerian MLP Index & Dow Jones REIT Index are down 10 or so. Financials are getting their fair share of selling, down 5-10% on these fears. I noticed last night, the REIT Index had been flattish for the the past year while the rest of the markets were getting hammered. Then it ran into Sep when it fell off a cliff, dropping 60% in 3 months. Grrr!
Dow Jones REIT Index --- 1 year
Just some of the news reported below are enough to give anybody the jitters. It sure looks, like, sounds like & feels like a recession. In addition, the big 3 auto companies were told by congress last month to come back with a better prepared presentation for congressional help. Economic worries abound!
- Manufacturing index drops to 26-year low- AP
- Oct. construction spending down 1.2%, more than expected- AP
- Holiday season off to modest start as shoppers focus on bargains- AP