The last Thursday – the day before the earthquake in Japan, the index Dow Jones Industrial Average (DJIA) suffered its biggest daily decline (-1.9 percent) since August. In Friday’s session, the index of 30 leading U.S. companies rose 0.5 percent, but on Monday almost deleted this increase (-0.4%), and on Tuesday dropped by 1.2 percent. The markets in the U.S. fell under the influence of fears about jobs, debt and the situation of Spain in Saudi Arabia. But what does this mean for the small investor asks Brett Arends at The Wall Street Journal. Wonder for a day I had it, the ability to purchase or just a little cloud an otherwise sunny horizon? And whether it was a sign of impending danger?
The next move of the market is always a mystery. He can jump with 500 points to fall by as much or remain unchanged. You must day market volatility to lead our financial decisions. All this may be passed storm. However, there are reasons for concern about what happened, although I might be unnecessarily cautious. When the stock market fall, I love to look for reasons why it pays to buy them cheaper, “he writes. Here are 5 reasons that despite the fall in DJIA of 228 points make him to be cautious.
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The Index Dow Jones Industrial Average experienced the worst May of 1940, and many hedge funds that have performed remarkable well in the months after the collapse of Lehman Brothers, suffered heavy losses. According to data from HFRX Global Hedge Fund Index, hedge funds in the U.S. lost an average of 2.7 percent in May, against the debt crisis in Europe, the subsequent decline in shares, the euro and commodity prices, and melt the difference between yields on short and long-term U.S. securities. This is the most significant decline in hedge funds in November 2008 when for months they lost an average of 3% resulting from the bankruptcy of Lehman Brothers in September. Almost every investment strategy has been losing in May, comment from Chicago-based Hedge Fund Research Inc. Dow Jones Industrial Average sank by 7.6 percent due to fears that problems with the Greek debt will be spread to Spain and Portugal. Profits of some of the most famous hedge funds this year were deleted. “Trying to manage risk in an environment where anything can go wrong, goes wrong, it is a lost cause,” said Brad Baltar, director of Boston-based Balter Capital Management LLC. “The only defense which seems to act like this in months, is to pay everything in cash.
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The growth of industrial production in Russia for the period January to April reached 6.9% yoy, Russian media reported on data from the Rosstat (Russian Statistical Service). Only in April from a year earlier growth in industry was 10.4 percent. On the other hand, for April to March, a drop in industrial production by 3,4%. The growth of industrial production in Russia for the first quarter amounted to 5.8% yoy in March but the figure was 5.7 percent. Gross Domestic Product (GDP) of Russia for the first quarter rose 4.5 percent on an annual basis. Among the leaders in growth industries is now the extraction of natural gas for April from a year earlier marks an increase of 27.5%. Significantly increased annually and the production of meat, fabrics, bags, plastics, furniture and some others. But gold production, metallurgy, machinery, trolley, sunflower oil, fell sharply. The financial crisis in Russia was less felt than ever and the Russian government did not got strong restrictions in the public expenses as the other countries.
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