1/9/09

U.S. stock market may be the first annual decline in six years

Even Lehman Brothers claims in bankruptcy protection and Bank of America acquired Merrill Lynch before the news came out, the U.S. stock market is likely to have decreased by the end of trading in 2008. If true, this is the first time in six years the annual decline in U.S. stocks.

Reuters reported that on the average of 19 analyst estimates show that S & P 500 Index this year will fall nearly 11 percent, the Dow Jones industrial average is expected to drop nearly 13 percent. By the end of this period of time is currently two major indexes were expected to rise about 4% and 0.7%.

Analysts expected the end of S & P 500 closed at 1430 points, the Dow closed at 12800 points, respectively, will be lower than the 2007 year-end closing level of 1468.36 points and 13,264.82 points.

Survey shows that market expectations earlier this year with the pressure of the credit crisis receding, the stock market will be all the way up to the end of 2008, but such hopes have been dashed.

The survey is in the financial industry crisis in the air waves once again conducted the week before the U.S. government to take over the two mortgage financiers Fannie Mae and Freddie Mac.

In view of the financial markets over the weekend earthquake and the mountains shake, and a U.S. investment bank out of the survey estimates will almost certainly be further amended.

2008 is likely to be a record since 2002 more than 23 percent decline, the U.S. stock market appeared for the first time the annual decline. In 2002 after the technology bubble burst in the final year of a bear market.

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