Market Gains Cautiously Wipe Out Losses

 

Decent news is emerging about the shape of U.S. stocks. The losses the American stock market experienced several weeks ago have been pared. An increase in materials and oil companies have helped reverse loss trends. While this is good news, a few questions do emerge.

The price of oil has dropped dramatically due to a glut. In North Dakota, the economy has virtually collapsed due to the state’s oil industry suffering in the aftermath of the glut. Oil company executives are worried about a looming recession due to the impossibility of a sustained oil industry rebound.

Retail sales have also been, to put it mildly, awful. Amazon.com reported major losses due to a decline in sales. Walmart was hit exceedingly hard. The retail giant is closing hundreds of stores across the globe. Holiday sales were horribly weak.

Yet, Marcio Alaor of Bank BMG says the market experienced a rebound. The losses previously experienced have been wiped out, and the market is back where it was. Not everyone is singing the praising of a great economy. GDP growth has been consistently weak, and this could mean the fears of a recession are legitimate ones.

Markets have their ups and downs, anyone who knows even a tiny bit about investing realizes this. The market could end up dropping again at any time. Of course, the market could also skyrocket upwards. At present, the weak dollar and the slow rate of growth indicate the market is going to stagnate for some time.