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Dow Plunges more than 500
By Amy Wood
Tuesday, February 27, 2007
The Dow plunged more than 500 points Tuesday just before the close. Experts say it’s part of a global market plunge sparked by growing concerns that the U.S. and Chinese economies are cooling and that equities prices have become overinflated.
A 9 percent slide in Chinese stocks, which came a day after investors sent Shanghai’s benchmark index to a record high close, set the tone for U.S. trading. The Dow began the day falling sharply, and the decline accelerated throughout the course of the session before stocks took a huge plunge in late afternoon as computer-driven sell programs kicked in.
So what does a plunge in the market mean to you and your retirement savings… sound off below.
I’ll see you on your CW News at Ten.
Amy Wood
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COMMENTS
According to the news reports, this drop affects big guys and little guys trying to make it. The big guys benefited from the drop by selling as soon as it started and the little guy that didn’t sell is the one suffering. It’s a catch 22 if you ask me.
The Dow only reflects the actions of buyers and sellers for a short period. In time, these cycles reverse themselves and astute people make millions and, as Jim, says, some loose their shirts. The stock market has undulated in this manner for centuries. I for one, avoid direct contact with it and leave my investing to the professionals.