Dow crosses into bear market territory (down 20% from peak)

[Newsjock]

Source: Reuters

NEW YORK (Reuters) - The Dow Jones industrial average (DJI:^DJI - News) of stocks slid on Friday into bear market territory as investors fretted about the impact of record oil prices and mounting credit losses in the financial sector.

To begin a bear market cycle, or prolonged period of falling stock prices, the index needs to end the session at least 20 percent below its closing peak, reached in October.

The Dow was down 124.98 points, or 1.09 percent, at 11,328.44, which was 20 percent below its record close on October 9, 2007.


Read more: http://biz.yahoo.com/rb/080627/markets_stocks_dow.html

[Warpy]

1. Not surprised in the least

I predicted it would do this until Stupid is out of office and the Reagan revolution is destroyed.

There might be some guarded optimism once Obama takes office, but only a complete 180 from GOPonomics will turn this economy around.

If McCombover gets cheated in, then all bets are off. We'll have another depression.

[Hydra]

3. Ya

They keep refusing to create jobs(and not have them be HB1 jobs) and continue to eliminate or ship them off.

"Free Trade" is BS for a world superpower. Superpowers produce all of their own goods and ship more out. We should be at 100% employment before we talk about offshoring or bringing more workers in.

[jonmiller74]

5. the Ultimate goal is

They won't be happy until the average US worker's wages are the same as those of off-shore hubs. Then they will have the permanent underclass caste system to ensure investor profits, they desire.

[Hydra]

6. Welcome to DU!

While I agree with your assessment, our overlords are not providing us enough to survive on.

Really, the middle class system works best. Fat, happy workers that spend lots on toys and defend the right of the super rich to be that way.

In this case, I think they are looking at population reduction. Prepare to be culled!

[Tandalayo_Scheisskopf]

7. I agree,

Look at health care costs, energy costs, food costs, lack of jobs...a culling of the herd is the only strategy that makes sense.

[SpiralHawk]

2. Republiconomics

Ptooey!

[DJ13]

4. .........

[Thor_MN]

8. Aren't all the major indices either below the point where * took office or within

striking difference? I have a feeling that * could leave office with no gain or even a loss in the stock markets for his duration.

[wishlist]

9. From Jan 2001, Nasdaq down 5%, S&P down slightly, Down up only 8% or so

Makes you wonder when will the Wall Street crowd admit just how bad the Bush economic policies have been for the markets. Investors in oil and energy though have done ok I guess, as oil has risen about 400% since Jan 2001. Still so many many financial advisors still advocate that people absolutely should keep on investing despite the dismal results this past 7 1/2 years. The Fed has used up their bag of tricks after lowering interest rates so drastically in the face of mounting inflation. Stock market has been due major correction for a while now, but those rate cuts propped it up temporarily.

Compared to stock market, a portfolio of safe CD's and Savings Bonds has risen about 45% in value because bank and bond interest rates were around 6 to 7% when Bush took office and still currently around 4% for people who locked in decent rates on some longer term Cds and bonds.