James McKee

Stock Market Prepping For a Tumble In 2011



Posted: Monday, January 24, 2011

by James McKee
http://www.forex.tradingcharts.com

The American stock market has been seeing healthy earnings for 52 weeks now and many are wondering when gravity is going to pull the market back down.  With all of the bloated stock prices out there due to news that the Fed would be buying 600 billion in bonds among other news the stock market certainly appears to be on the edge of a precipice.  Earnings reports by powerhouses such as Google and Facebook’s impending IPO will help the market to stay on top of itself for a bit longer but the overall picture for the stock market is certainly a bleak one.

American companies still have not altered their behavior and goals overall and as a result many companies remain insolvent despite government bailouts.  While some companies may be attempting to clean up their act (GM for instance) many others are continuing to make the same bad decisions that brought them to this place to begin with.  Banks such as JP Morgan Chase are continuing to purchase other failing financial entities (Wachovia, Bear Stearns) and as a result are taking on risk they should not be.  This is not a time in history when any business should be taking un-necessary risks because it may be the last purchase that business makes before declaring bankruptcy.

Those on the forex currency exchange should keep track of any changes in the US stock market as this will have a fallout effect on the US economy and the US dollar as a result.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
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Top-level comments on this article: (1 total)
» left by Jennifer Stewart
 1 year 97 days ago.
152 fans.
Your article is very interesting. I had no idea that so many American companies were continuing their bad practices. Will they never learn?
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