Monday, May 22, 2006

Your money isn't safe in emerging markets either

India, Asia, now Mexico & Latin America....

Stock markets around the world have fallen sharply in recent weeks, spooked by concerns that U.S. interest rate hikes could go further than previously expected and by a sell-off in record-high commodities.

Demand for bonds shot up as investors pulled out of the stock market, bringing the bond yield down and helping flatten the curve. Demand would be higher if people weren't nervously awaiting another rate hike due to indicators from the Fed like this one. I see why people aren't too happy these days about the direction the economy is going.

1 comment:

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