Tuesday, July 8, 2014

Is the Dow Going to Fall Eventually?

With the coming of the American's Biggest Holiday-July 4th, the stock market strives a significant growth too.
The Dow Jones Industrial Average's breach of 17,000 Last Thursday has raised many investors' enthusiasm for stocks.
And a lot of professional stock market predictors are expecting a growth on the market.

But Douglas McIntyre, editor for 24/7 Wall St., lists four factors that could push the Dow back down to 15,000. It closed at 17,024 Monday. 

The first and perhaps most dangerous threat to the Dow’s advance is a major flare-up in the Middle East, Ukraine or Central Africa," he writes.

Weaker-than-expected earnings for some major companies could do the trick, McIntyre says. "Certainly a series of misses among large retailers like Wal-Mart Stores would make traders anxious about consumer spending.

Valuations could turn into a problem too, McIntyre explains. "The most obvious and most simple-minded reason for a selloff is that the markets become too expensive." The S&P 500 had a trailing price-earnings ratio of 19.4 Thursday, up from 18.4 a year ago, according to Birinyi Associates

Stocks also could suffer if the economy and payrolls don't grow as strongly as forecast, McIntyre argues. Most analysts expect the economy to grow at least 3 percent for the remainder of the year.

All in all, even though the general trend for the stock markets is going up, the investors still need to be aware of all the factors to prevent from losing the "game" in the market.

But if unfortunately, you fall, it is still not a life disaster. You are always welcome turn to some of the trustworthy car title loans company for help.

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Read Latest Breaking News from Newsmax.com http://www.moneynews.com/StreetTalk/McIntyre-geopolitical-stocks-Dow/2014/07/07/id/581181#ixzz36tq7yuY1
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