Thursday, September 22, 2011

Global Meltdown: Investors Are Dumping Nearly Everything

Thursday, 22 Sep 2011 | 12:16 PM ET - CNBC Executive News Editor - With no solution in sight for Europe and new fears of a global recession, investors dumped stocks and commodities and ran to the safety of U.S. Treasurys. Treasury yields [cnbc explains] , as a result, slipped to historic lows with the 10-year yielding 1.75 percent and the 30-year at 2.86 percent. The dollar was also a beneficiary of a massive fear trade that sent U.S. stocks sharply lower, on the heels of steep sell-offs in equities markets around the globe. The worst performing stock market sectors mirrored the sell-off in global commodities markets, with materials down 4.6 percent and energy stocks down 4.1 percent. Copper, hit by concerns of a Chinese slowdown, tumbled 7 percent to a 1-year low. Gold, usually a safety play, was sold into the maelstrom as investors raised cash. The euro [EUR=X 1.3485 -0.0092 (-0.68%) ], broke below 1.35, a recent bottom of its range. It was trading in the 1.346 area, an eight-month low against the dollar. The dollar index [.DXY 78.38 1.03 (+1.34%) ] was 1.4 percent higher."People are finding it really isn't gold. It isn't precious metals. It's not currencies. U.S. Treasurys are where people are flocking to at a time of extreme concern about risk, and we continue to see Treasurys continue to get bid up," said Zane Brown, fixed income strategist at Lord Abbett.


Blogger SammiDe said...

So what the whole world had gone conspiracy theorist?

September 22, 2011 at 12:05 PM 
Blogger mattarazi said...

They are buying stocks and selling the stock, which is down. Because all Swing traders will tell you, following the trend does not always work. Keep posting such a nice post.

Day trading help

September 23, 2011 at 3:09 PM 

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