Headline at Yahoo Finance said that “Bears Take Over on Wall St.“. With that title you’d think a stampede of wild bears, freshly awoken from their winter hibernation, had rushed over to Wallstreet to tear off the limbs of stock traders as a bad case of getting up on the wrong side of the bed.
Of course the harsh reality is that Federal Reserve Chairman announced that Manufacturing output seems to have slowed down in the US indicating a more pronounced recession for their economy, which in turn the stock markets followed suit by massive drops in stock prices.
Yesterday the Philippine Stock Market also dropped due to the downgrading of the FAA rating of the Philippines and the even prior dip in the US stock markets.
With the US holding the distinction of being the biggest economy in the world and therefore a major export market for most countries. Whenever the US economy catches a cold, the whole world economy starts to sniffle as well.
Well, there’s always the China market to look forward too.[source]