As everyone is aware, Standard and Poor's downgraded the US debt from AAA to AA+ on Friday evening. This, along with concerns about Europe's debt problems and the increasing probability that we are or may soon enter another recession, led to the 600-point fall in the Dow Jones Averages on Monday. As I write this on Tuesday morning, the Dow is up over 100 points and has been up over 200 points. It is common, but not always, that the market bounces back some after a major drop like we had on Monday.
What does the S&P downgrade mean?
In the short-run, other than to make everyone more nervous, it probably does not have much effect. A headline that ran yesterday, "Investors Flock to Treasuries over Treasury Downgrade" shows that the investment world does not expect much change to result from the downgrade. US Treasury bonds are still the investment of choice when investors flee to safety.
Click here to download full article
Sourced by IMAP Reprinted with kind permission from Mr Bob Veres
http://www.bobveres.com/