Written by A.J. Brown

Financial Stocks Fuel Losses

The DOW Jones dropped 217 points today, or 1.7%. So far this year, the DOW has dropped 5%, which is not insignificant. The other indeces shed points as well.

What is fueling these losses?

Citigroup, for one. Today they announced a loss of $9.8 billion, the biggest quarterly loss in its history. And the losses may not yet be over for this troubled Citi. According to Forbes, "further write-downs will come as the assets deteriorate."

Trading volume was high. The NYSE saw 975 million shares trade hands, while the NASDAQ saw action on nearly 1.4 billion shares. So today’s price movements had a lot of power behind them. These movements were not caused by just a handful of people.

Are we entering a full-on bear market? Has the recession already started? We will continue to watch and see what happens.

Best Regards Always,

A.J. Brown

Categories: News

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