Stocks opened lower on Monday after a key manufacturing barometer showed factories continue to suffer in the slumping economy. The New York Empire Manufacturing Index slumped 9.41 points in May, indicating difficult times in the sector and presenting a headwind for economic growth. And IMF chief Dominique Strauss-Kahn said that the worst may be yet to come for the global economic crisis. Read and listen to what the experts had to say…
Markets Set for Another Pullback
The move to the upside over the last week or so has been caused more by a lack of selling pressure, said Dodge Dorland, CIO of Landor Capital Management. “If selling pressure comes back into the market, the demand for buying stocks now is rather weak relative to what it's been, and so we're setup for a pullback," he said.
Markets Are Still Contracting
The economy has averted a depression, but it is still shrinking and the stock market has got carried away with all these green shoot discussions, said Juerg Zingg of Q Investments. “There’s nothing like a rebound here—markets have taken too much optimism as a result we expect market correction,” he said.
Investors Too Nervous to do Anything
According to Barclays Wealth and The Economist Intelligence Unit's latest report, high net-worth investors across the globe say they are seeing significant investment opportunities in the current markets, but most are still too nervous to take the plunge.
Airline Industry to Recover in 2010
"I'm very much a believer in the long-term positive dynamicsfor the aviation industry," said Dave Cote of Honeywell.
Scott Carson of Boeing Commercial Airplanes said "it feels like we've seen the bottom of the freight market. It feels like we're bouncing off the bottom of the passenger market." Both Cote and Carson said that the industry could recover in 2010.
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Obama’s Health Care Plan ‘Totally Unrealistic’
David Walker of the Peter G. Peterson Foundation says escalating health care costs represent the single largest driver of the country’s debt. He criticized Obama’s current health care reform proposals. “[Obama’s] pledge to not raise taxes on people who are making less than $250,000 was totally unrealistic…We need toward move to universal coverage, but we need to focus on basic and essential coverage,” he said.
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