Dow Suffers Biggest Monthly Point Loss in 2 Years
Dow Jones index ended 820 points lower in May at 12, 393, erasing gains made in March. The market was spooked by:
l. Lower employment figures than expected;
2. Higher number for unemployed food stamps;
3. Lower oil prices from $l05 to $86/ barrel (bad news for energy companies; good news for consumers)
4. Dismal news on:
Facebook which started at $38.00 and ended last May 3l at $8 lower (that erased a lot of values)
JP Morgan Chase of $2B on trading losses which damaged the reputation of Jamie Dimon, CEO of Chase
The announcement of ECB President Draghi of Greece exit from the Eurozone. Spain, which may exit earlier, promises to be a much bigger concern.
Investors Fleeing to US Treasuries
Investors were flocking to US debt instruments - the US treasuries whose yield was at l.54% its lowest. It used to trade at 1.62% (Take note China is dumping these instruments)
Is this the start of Financial Doomsday in the US?
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