It’s been a wild and wooly couple of weeks on the international stock markets. But may be the recent slide grinding to a halt. or just getting a breather prior to tumbling some a lot more? And a lot more importantly, what does it mean to astute penny stock investors?

Wall Street recently stumbled to its worst week of the year, and global stock markets fell dramatically on concerns about rising interest rates and slowing growth. Following rising almost 9% within the first four months with the year, the Dow Jones industrial average has fallen about 6.5% from a six-year higher, reached May 10, 2006.

Stocks have been ailing due to the fact penny stock investors fear the Fed could be so focused on inflation that it ignores signs of an economic slowdown, raises interest rates too high and sends the economy into a recession.

Global stock markets were sent reeling last week right after golden-tongued U.S. Federal Reserve Chairman, Ben Bernanke shocked penny stock traders in saying the Fed will continue raising interest rates to keep inflation in check.

And that decision will possess a direct impact about the penny stock marketplace. Higher interest rates hurt penny stock prices because investors believe it will curb economic growth and corporate profits.

But why is inflation heating up? Higher energy costs. Traders and penny stock investors are also worried that using the hurricane season officially under way, Gulf Coast refineries and oil production sites could be damaged again this summer and fall.

And higher interest rates have the ability to affect the entire economy. Finance charges on credit cards will rise. So too will rates on mortgages and residence equity loans, putting additional pressure on homebuyers and a softening housing market. Ultimately, it will price a lot more to borrow for expansion.

But does this signal doom-and-gloom for the penny stock marketplace? Au contraire. While the temptation to sell everything can be overwhelming, some see this as an excellent chance. “I would not be selling. I would tend to become buying,” said a single New York analyst.

So how precisely is this an opportunity? It just so happens that numerous companies caught in the market’s downward spiral are cheaper than they were a few weeks ago. And as any seasoned penny stock investor will tell you, buying a great penny stock when it’s been beaten down isn’t a bad way to make funds over the lengthy haul.

If you are able to stomach some from the volatility that is. While many blue chip traders have difficulty handling the market’s unpredictability. it’s par for the course.

So, “snap out of it,” said another watcher. A month of dizzying selling has brought the markets into an attractive range. Is it possible the markets will fall much more? Totally. Right after all, no penny stock is a sure thing. But 1 thing is certain: “Stocks are very much cheaper now than they were two months ago.”

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