Stock market 2010
* As the economy is getting better form the Great Depression of 2007, the analysts think that the stocks will perform better than bonds and cash. Though there was a 50% rise in the stock market till March, 2010, in the last few weeks of April, 2010, the market has seen to be tumbling. Though there is uncertainty in the market, but, the economists expect FTSE 100 to be in the range of 5,000 to 5,500 by the end of 2010. The analysts are expecting to see a slow but steady growth in 2010.
* In the year 2010, it is predicted by the economists that the Dow 30 will have another unstable year and will dip below 10,000 a time or two before the year end, closing at 11,650. However, instead of a second-dip recession, the GDP will grow by 3% or more. As a result of Obama’s stimulus program, there will be a positive effect on short sale and low mortgage rates will stabilize the housing market. The stocks will also be relatively cheap on an earning basis.
* As a result of debt problems in Europe, which has not yet been resolved, the economic growth in the US has also been dragged down. On 6th May, there was nearly a 1,000 point drop in the Dow.
* On a positive note, stocks are now more overselling than they were at the end of the March 2009, and that oversold condition resulted in an assembly.
As a savvy investor, you should follow the economic condition closely, and invest your money, to get the maximum profit on your money. A stock market is a public soak where stocks, bonds and shares of different companies are bought and sold. The companies issue stocks to get fund, which is necessary for the development of the company, in terms launching new products or employing employees or expanding the business. You become a part of the company by owing stocks of that company. You can earn money, if that company shows profit.
Stock markets are closely related to the economic equilibrium of a country. When the economic condition of the country is good, inflation and unemployment level is low, the market is said to be bullish. If the economic condition is adverse, there is rise in inflation and unemployment level, the market is said to bearish.
Samantha Taylor is a professional blogger on financial issues
