Stock market tanks - sentiment currently sour

by Darren

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With an hour to close, the stock market tanked, finishing off a week with relatively poor economic news. We’ve covered the trends in the last few weeks and months, and it’s looking like the consumer is having a tough time carrying the economy. As interest rates continue to rise, spending slows and affects most companies. Add to that the effect of rising raw material costs as well as higher prices on gas, and you have an affect that’s severely hampening growth prospects.

So far the major growth stocks haven’t plummeted, but I have a suspicion they might. Corporate profit warnings are the newest ugly factor to enter the mix, and almost never good for surging share prices.

Some companies are still doing quite well, so those are the ones to consider going long with. Great companies can operate in all economic climates, so stick with the proven winners.

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