Global Stock Markets Rapidly Declining
October 06, 2008
The stock market in the United States as measured by the Dow Jones Industrial average has fallen below the psychological threshold of 10,000 inter-day. Today's global markets are also down in what could be one of the largest single days global loss of wealth in history:
Dow Jones Industrial Average -4.1%
NASDAQ -5.4%
S&P 500 -4.8%
London -7.3%
Paris -9.0%
Frankfurt -7.1%
Tokyo -4.3%
Hong Kong -2.9%
Toronto -6.00%
Mexico - 5.6%
The great losses in the stock market has renewed interest in US Treasuries, Gold, and Bank Deposits. Investors are so anxious to buy short-term T-Bills that the yields on the 3-month (0.28%) and 6-month T-Bill (0.87%) have both been pushed below 1%. Gold is up $29 today, but is still far below the $1,000 price level and is still a fluctuating commodity that is difficult to forecast. The highest rates on bank money market accounts are at 4.00%, but are only FDIC-insured up to $100,000 per depositor unless an investor wants to make advantage of the Congressional bill that temporarily lifts the limits to $250,000.
