Stock Forecast Methods

Stock Market Trading and Investing

A Short Overview of the US Stock Market

The US unemployment rate decreased to 9.7% in May, after rising to 9.9% in April. However, the economic growth in the first quarter was slower than expected; it grew at a 3% annual rate from January to March. Consumers and businesses spent less than first estimated. US trade deficit was a drag on economic activity. Also US housing market started falling more than expected in May to a five-month low as a home-buyer tax credit expired.

Evidently, fears continue to dominate investor decisions because of the debt crisis and financial regulatory reforms. It looks like many investors still watch for better moments to re-enter the stock market. An additional factor is seasonal – since summer almost always has been a sluggish period for stock investing. Nevertheless, S&P-500 index showed some strength for two weeks of June – the biggest two-week gain since November. The recent 13%-drop in May could be a healthy correction. Normally a correction is defined as a drop more than 10% from a recent maximum.

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June 19, 2010 Posted by | Stock Market Forecast | , , , , , , , , , , | Leave a comment