An Up And Down Week For Stocks, With Europe The Culprit [AUDIO]
It has been a roller coaster week for the stock market, and investor fears are being summed up in one word: Europe.
The dow took a huge drop on Wednesday, only to rebound somewhat on Thursday.
Investors spent most of this week with a wary eye on the on-again, off-again political wrestling in Greece, as that country deals with its fiscal crisis. And there was bad news from Italy which also sent some nervous investors to the sidelines. The problems in the Eurozone were also recently magnified by the failure of former Governor John Corzine’s firm, MF Global, which was pegged on bd bets in Europe. And whle there are also allegations some hanky-panky may have taken place with investor money, MF’s big losses were due to European failures.
Greg Plechner of Modera Wealth Management in Westwood says those in the market for the long haul should remember that it is because they are suffering through this period of European uncertainty that you are seeking a goal at the game’s end of above-average rates of return compared to CD’s or Government bonds.
Plechner says until there is a definitive resolution in the Greek problem, it could trickle over into other markets, such as Italy.