emerging markets indexes seem to have plummered substantially - is there any rationale behind it? i have heard that the month of may is not a good month in general for the stockmarkets. how is this explained? is it just empirical or is there any measurable reason behind this?
Thanks
2007-01-16 05:11:21 · 3 answers · asked by danger33 1 in Business & Finance ➔ Investing
In May 2006, there were a lot of nervousness about inflation, oil prices, and the future of interest rates. These three things caused investors to become really nervous so the market sold off. I wouldn't call May 2006 a crash though. It is more of a correction. Check out http://ibooyah.com for investment matters.
2007-01-16 06:07:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Stock market goes through periods of correcting all the time, and the reasons could be profit taking, sector rotation, uncertainty (economy, war, interest rates, inflation), more supply than demand, and catastrophe. I believe in May 2006 was a combination of all of the above.
2007-01-16 13:21:22 · answer #2 · answered by Anonymous · 0⤊ 0⤋
"Sell in May and walk away," is a very old saying for the stock market. "The big money" literally goes on vacation from May to August.
2007-01-16 13:22:46 · answer #3 · answered by gregory_dittman 7 · 0⤊ 0⤋