Worry About Rebound Lowers Stocks
Investors continued to sell off stocks on Tuesday, as commodity prices fell and new economic data dashed hopes for an imminent rebound. New figures showing a 1.1 percent decline in industrial production reinforced that view, and blunted the impact of other, more positive economic numbers.
“You have a one-two punch that works against the market,” said David Kovacs, chief investment officer of quantitative strategies at Turner Investments. “Between consumer stocks selling off and commodities selling, you have a fairly broad, weak market.” [via NYTimes]
There are positive changes happening to the economy to date, but we are not going to have any sort of quick fix to get us through this. It will take time, hard work, and patience, but we will see this through. What’s most difficult to deal with on a national level, in my estimation, is the ‘people element,’ where you have an increase in unemployment and a decrease in consumer spending as a direct result. The companies that will weather this storm, are the ones that have positioned themselves as “recession proof.” Government contractors, consulting firms dealing with “green tech,” and companies that deal with necessary goods and services.
You won’t see Exxon Mobile going out of business any time soon.
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