Dow Jones Industrial Average fell under the 15.000 today, for sure a sign of trouble. Some would say that this is the delayed effect of “Sell in May and go away” (fin out more from our previous article here). Others would say that this is the normal behavior of stocks in the summer months but most of the investors would be prone to blame the Central Bank of U.S. for its decisions. But, this also may be a false alarm signal. Considering the historical rally of the indexes for the beginning of this year, chances are good to have the market back on the increasing trend. Regarding the big picture, U.S. is growing at a moderate pace.
As for China, it is determined to keep its position as the second larger economy in the world. In this regard, it is open to make considerable changes in the way it runs the economy, conferring it a more liberalized character with more relaxed regulations.
DJIA, bearish or bullish? by Silvia Gabor