Sunday, January 17, 2010
Signs of fatigue on stock and commodities markets
With investorsâ€™ hopes of an economic recovery that might have gotten ahead of reality, the Dow Jones Industrial Index experienced its largest one-day drop (-0.9%) of the year in a sell-off on Friday â€“ unnerved by China starting to rein in liquidity and cautious earnings guidance â€“ causing the benchmark US indices to register a fourth down-week over an eight-week period. Not surprisingly, VIX Index, also referred to as the â€œfear gaugeâ€ of US stocks, gained 1.2% over the week. Read all about this, together with some thought-provoking news items and quotes from market commentators during the past week, in the weekly â€œWords from the Wiseâ€ review.