ITBC Business and Market analysis

Friday, March 11, 2011

The Dow Jones is below 12,000 points again. Should you worry?

The DJIA is back below 12,000 points and is today at 11,984.60. Should you worry? I don't think so. A recovering economy is bound to have hiches. It's unlikely that an economy which only two years ago was at it's worst since world war 2 is going to recover fully in that short span of time. The fact that republicans hav e gotten power in the last U.S election might not help. As controversial as this view might seem, it makes sense that, since the last elections the direction of the U.S economy is as solid as it may hay have appeared to be. The hiches are bnound to be there, especially if bad economic policy is followed and there's short sight sighted fiscal policy that doesn't take into account all economic factors due to some false idiological doctrine that some Republicans may have.

Whatever the numbers are in the maket indexes the S&P 500 is at 1,295.11. The factors that created the environment for the recession to take place in 2007 have largely been corrected and measures have been put into place to see that the same crises do not occur again. Wheather the fiscal instuments will be effective remains to be seen.

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