US stocks started the first day of the week sharply lower, but subsequently recovered towards the end of the session to end mixed.
The market spent much of the day chasing the fall in commodity prices but also recovered ground as commodities came off their lows. Market watchers noted that commodities tend to rise along with investors' belief in an economic recovery, and fall when pessimism sets in.
While investors are starting to worry about the soundness of the market's rally, market watchers noted that investors are also worried about missing it and hence the strong buying in at lower levels.
Besides the drop in hard commodity prices, oil also fell 35 US cents to US$68.09/barrel on NYME. Meanwhile, over in Europe, investors are also starting to worry about the longevity of the rally ? the FTSE fell 0.8%, DAX fell 1.4% and CAC dropped 1.5%.
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One response to “Investors worry about the rally but also worry about missing it”
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I think its human nature. There is a lot of fund entering the market propping up the indices all over the world. Whether if the economy is heading north is anyone's guess
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