Its frustrating.... Do you have some idea about correction ... when would it happen...
Is there any chances to become U.S economy strong in near future.. and dollar will go up.....................
2007-07-17 08:32:33 · 6 answers · asked by Raj m 1 in Business & Finance ➔ Investing
There are all sorts of factors that could cause the correction, I can tell you if anyone knew what it would be, they wouldn't be here answering questions on yahoo, they would be out making millions of dollars. You can't time the market, you might get lucky every now and then but over the long haul it's not going to work.
I've seen so many reports of investors who setup a diversified portfolio road out the ups and downs and ended up with decent returns 8 to 12%
The average return for people trying to time it was 3%. So take your pick?
But if I had to say anything I would say it's going to be a while before it starts dropping. Blue Chips have been out of favor for a while, it's been all about mid, small, and international. It's just starting to swing, but what do I know?
2007-07-17 08:39:37 · answer #1 · answered by Jeff M 3 · 0⤊ 0⤋
About the Dow- predictions about the future are best obtained from your local psychic. The professionals rarely get predictions right.
The US economy is strong and has been strong for several years. You have been reading the wrong news reports.
Currency values don't reflect just the strength of the economy it also takes into account among other things interest rates and government spending. Most European countries have weak economies- France has a 10% unemployment and the US is 5% rate.No european country has better production numbers thant he US yet the Euro is going up in value.
2007-07-17 18:16:12 · answer #2 · answered by smussehl 1 · 0⤊ 0⤋
It's when the money is all in is when it will crash. The stock market is down sensative and only propped up by buyers. When there is no more buyers because they ran out of money, then all is left is sellers. Since there will be too few buyers to buy on the dip (because they have no more money) then it will drop. Right now there is still more money pouring in as more companies go private or are bought out reducing the number of stocks one can buy. Also stocks and commodities are the only thing worth investing in right now as everybody that can buy property has and bonds don't beat inflation plus taxes.
Will the dollar go up? No. In fact it could crash if oil goes from dollars to Euros. For the dollar to go up, people in other countries will need to buy American products. For instance, people in other countries would rather buy a $3,000 car from India or China that lasts 3 years than a $15,000 car from the U.S. that lasts 20 years. In Africa, the U.S. is having problems selling portable lamps, because China is selling theirs so much cheaper even though they only last a week or so and the American lamps last for years.
The jobs in the U.S. that are in hot demand are jobs that can't be outsourced such as medical staff, police, soldiers and moving freight (often from other countries).
It's so bad, that we get parts made in Mexico, boxed in Canada and sold in the U.S. because it's cheaper that way.
2007-07-17 18:25:30 · answer #3 · answered by gregory_dittman 7 · 0⤊ 0⤋
The DOW is jumping because of expanding overseas consumer markets. The U.S. is about to go into recession and no, unless something changes, I don't see the U.S. being very strong going forward.
To answer your question, the market may not go down with the U.S. economy. It is now driven by global investors and global markets.
2007-07-17 15:42:05 · answer #4 · answered by jck_kerouac 2 · 0⤊ 0⤋
The next correction is scheduled for September 13, 2007.
2007-07-17 20:58:42 · answer #5 · answered by Anonymous · 0⤊ 1⤋
If I could answer that I'd give up my day job, but yes, there is a chance of a stable, improved US economy.
2007-07-17 15:37:32 · answer #6 · answered by Robert S 6 · 1⤊ 0⤋