I recently wrote about the stats of US stock markets for the last week. Buyers were interested in selling their shares rather than investing their money in buying more stocks.
I was reading different articles to find the reason behind the recent big correction: here are few interesting facts or possible reasons:
In one of the articles, the author described that the decrease [~370 points] in DJIA index, that was seen on 20th May 10, was the biggest decrease we have seen in DJIA index in the past ~one year.
Some experts believe that buyers/investors in USA have finally started to worry about the falling/weakening Euro. When this currency [€] starts to weak against US Dollar or British Pound, then this may tell us what the overall situation in Europe is.
Another possible reason for the correction in markets can be the decreasing oil prices. Experts believe that one way to measure the world overall economical situation is to see where the oil price is going. High oil price indicate a healthy economy where low oil price can signal troubling economy : )
In one article, the author mentioned two stocks that he believed are quite important and can influence the stock markets a lot.
These two companies/indexes are:
Keefe, Bruyette and Woods Bank index [KBW]
And
General Electric Corporation
KBW Bank Index and GE shares: both have already dropped significantly in the past few weeks. If this trend continues, then we may see US stock markets under more pressure. More correction may come in the upcoming week if the oil price, Euro rate and the 2 stock rates fails to increase.
