Tuesday, August 14, 2007

Markets Are Down Again

Dow Jones fell again by 200 points yesterday and asian markets are follwing the downward trend early this morning.
Yen is trading at 117.20 against the U.S.dollar as of now, this is also a cause of concern as this will further increase the yen carry trade unwinding by levearaged players and insitutions and hence pulling out of funds from riskier assets like stocks and commodities.
Volatility is back again in the markets and is a cause of concern for those who are planning to invest. Investors hate huge uncertainity surrounding the markets and thus postpone their buying decision and prefer to park their money in safe assets like U.S.dollar and Goverment securities thus making stock markets deprieve of much required funds.
Unless and untill this nervousness fades away, investors will not be in a rush to buy riskier assets like stocks.