|
|
CURRENT ECONOMIC SITUATION HAS INVESTORS
AND CONSUMERS INCREDIBLY CONCERNED
By Greg
Anderson
For the third day in a row, investors worried about the war in Iraq have been selling stocks at lower prices. Although the selling was moderate, investors are far from panicky.
Since the war began March 19, there's been only one major sell-off, Monday March 24th’s 307-point slide. Fears that the fighting in Iraq will last longer than investors anticipated have been the culprit behind last week's selling, although their effect has waned as the market's losses have moderated. Wall Street is concerned that the longer the
war takes, the more cautious consumers and businesses will become.“Many of my clients are incredibly concerned about what will happen to their money with that war taking place,” said Geremy Chelius, a stockbroker with Salomon Smith Barney. “many investors have been selling their stocks, cutting their losses and moving their investments into other things, such a real estate.”
Economic news has also added to the decline in the stock market. The Commerce Department reported that consumer spending was flat for the second month in a row at the end of February as people try to conserve funds with worries of job security, the war, and rising energy prices. Investors are particularly interested in consumer spending, being that it accounts for 2/3rds of the economy.
“With the economy the way it is, people are becoming incredibly cautious with their money,” said Luke Barringer, a financial advisor with Northwestern Mutual Financial Network. “Many of my clients are expressing real concerns with their investments.”
Another cause of the concern is the rising energy prices.
“With the war in Iraq, we have all seen the gas prices go up,” said Scott Sorger a customer service representative with Long Island Power Authority. “However its not just gas prices, home energy prices have risen too, this has made my job somewhat more difficult.”
There is a real concern with the economy right now in America, due to rising prices, falling economy and the current situation in the Middle East.