Sideways day on the stock market
May 8, 2006 – 1:51 pmby Darren
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Things are moving sideways, because people are waitiing to see what happens with interest rates, and with oil stocks weaken.
Oil stocks weaken as crude prices are lowered. But mainly the current situation is based on waiting for an clues on interst rates:
The Fed “is the only thing holding the market back,” said Charles Lieberman, chief investment officer of Advisors Capital Management. “Oil prices are very good news, but I think the market is nervous that maybe the Fed’s not done.”
People are nervous with good reason. Higher interest rates and higher fuel costs represent a near fatal one-two punch for the average consumer. The consumer is still financing the bulk of the economic recovery, and at any point could cave in. Even Warren Buffett has made ominous statements recently concerning consumer credit quality, and the potential pitfalls for American businesses which haven’t been fiscally prudent. Right now low debt companies that aren’t dependent on fuel prices are worth looking into.
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2 Responses to “Sideways day on the stock market”
Hello, I’ve been a member on the forum for about six months (my username is “ascendant”) and I just discovered this blog today.
Seems like a good resource- although I hadn’t even noticed it was here until now!
Is the author(s) of this blogs members of the forum, and if so, can you tell us who?
By Chris on May 9, 2006
Hi, the blog was started a few weeks back, so it’s no surprise you haven’t found it until now.
I’ll make sure to add Author Bio info this week.
Thanks for your support.
By webmaster on May 9, 2006