With a sigh of relief heard throughout Wall Street today, the stock market opened higher this morning, despite a massive worldwide sell-off yesterday afternoon.
The DOW fell 416.02 points yesterday, making it the seventh worst day of losses for the its industrial average — but was up over 60 points in early trading today. The declines on Tuesday were speculated to be caused by a drop in the Chinese stock market and remarks made by Former Federal Reserve Chief Alan Greenspan about the health of the U.S. economy, warning that a recession could occur later this year. READ MORE
Do you think yesterday's drop was a warning of bad things to come, or just a natural blip in the stock market? Write to us at firstname.lastname@example.org and tell us what you think!
Here's What FOX Fans Are Saying:
“Greenspan needs to stay in retirement and shut his mouth. He is out of the limelight now and only wants to keep his stature alive, so no one will forget him. He has already caused enough damage to the markets over the years. It is notable that with every fall of the stock market, the bond market ticks upward - most of his investments are in bonds. Coincidence?” — B. (Boston, MA)
“First Greenspan should keep his mouth shut. Second, the market is probably rigged to cheat investors and the big bucks can only be made through inside trading.” — Bob
“I don't think it is natural when only 33 times in 14,650 trading days has the DOW dropped like this, but I'm also not sure this is a sign of horrible things to come. I think this teaches investors that they need to be more diversified.” — Steve (Chicago, IL)
“What goes up must come down. Buy low, sell high. 'The stock market will only remain high for as long as people believe it will and not a second more,' from the Zen Book of Investing.” — Mike (Wi Rapids, WI)
“Tell Alan Greenspan to keep this remarks to himself!” — Mac (Broomfield, CO)
“Just a blip. It is amazing how the mainstream news media jump all over a sudden decline and ignores the steady rise that has occurred. I can remember my Father-in-law telling me 20 years ago, 'If the DOW would hit 2000,' he would be a rich man. If only he could see it now.” — Michael
“I think Alan Greenspan needs to keep his opinions to himself or limited to only those clients that are paying him a consultation fee. When he retired as Chairman of the Federal Reserve, he made the choice to forego any relevance his 'opinions' should have on impacting the stock market. He needs to keep his mouth shut and go fishing.” — Jamie
“It was a hiccup fueled by undue media attention. If the media had not started screaming and speculating, there might have been a correction later in the day. It did go from down 500 back up 416.” — S. Dallas (Dallas, TX)
“It has been my long-held belief that stock prices are highly dependent on peoples' psychological state. If potential investors believe that the economy and the nation are sound, they are willing to invest their money in the market. If the future looks bleak or there is some national tragedy, people tend to pull their money out of the market in search of more conservative investments such as precious metals.” — Craig
“I think it was a knee-jerk reaction to a correction in the Chinese market. It highlights the U. S. investor's fear of any blip, bend, course change or anything out of the realm of 'normality' in the world markets. I only shudder all over to think what would happen if there is another terrorist attack in this country or on any country that plays a major world economic role. I think it was a MAJOR over reaction.” — Tom
“Mr., Greenspan needs to be muzzled or held responsible for his actions. I believe some sort of investigation should be in order.” — Bill
“Fed Chairmen past and present should keep their mouths shut whenever they feel a need to speculate. Speculate in their own homes, not in America, so that the fiscally ignorant in America don't freak out over NOTHING!” — Steve (Lawrenceville, GA)
“Why should a former Chairman (Greenspan) speak his opinions about the future of the economy? It seems to conflict with present thinking of our new Chairman.” — A.D.
“I have yet to hear any explanation that clearly explains why the U.S. market would drop in step with the market in China. I appreciate all the Monday morning explanations, but where were these people prior to the drop on the 27th? Wall Street can only explain market moves after the fact, never before a move. I believe these move are due to emotions reactions which is not very comforting to investors.” — G. S.
“Do you think GREED had anything to do with all this?” — D (Batesville, AR)
“It's the sign of a steady decline. Watch as the Chinese sell back all their dollars. That's when you'll see more than just a blip. You'll see something akin to collapse.” — Craig (New Kensington, PA)
“If you look at the stock market over the long-term, it has always moved higher, experiencing occasionally dips. Sit tight, grab some bargains and remember 'steady as she goes.'” — Jay (Ashland, OH)
“It was just a blip caused by the panic of folks who either don't know what the basics are, or willfully ignore how good the economy really is.” — Marty (Amarillo, TX)
“Would somebody please remind Alan Greenspan that he is no longer? He should restrict his advice and comments to those who wish to purchase it from him, however few they may be.” — Don
“Do we want lead in the world or follow? Stop the knee jerk reactions to market blips. There was not a nuclear war or natural disaster to justify jitters of that magnitude. Look at the big picture and lead the world, not follow.” — Scott (Jupiter, FL)
“It was a blip. Investors need to quit freaking out over every little thing so the market will stay steady.” — John
“Surely you can not be surprised by the market losses. We all get on this train and we are told the cliff is near and we see, it but we are making so much money, many stay on too long! Now the ones who got off are cleaning up!” — Dean (Cedar Rapids, IO)