Just when it looks like your retirement portfolio might recover after all, a day like today comes along. The financial markets are in turmoil today, responding to all sorts of news — mainly political news. In addition to disappointing housing market data, and the fact that Morgan Stanley’s profit failed to completely wow investors, a couple of unexpected events are shaping the market. And causing the bears to take firm control. With the way things are going, there is a reasonably good chance that the Dow will close down 200 points today.
China tightens monetary policy
Instead of preparing to lead the world in its economic recovery, China is tightening monetary policy. Officials recently decided to ask banks to suspend lending for this month, and that has investors speculating about how far economic recovery can go in 2010. That uncertainty isn’t helping matters on Wall Street.
Scott Brown wins in Massachusetts
Republican Scott Brown pulled off a surprise victory in the notoriously Democratic state. As a result, questions about what will happen next in the health care reform debate on Capitol Hill are being raised. This only adds to the uncertainty stirring the stock market pot right now.
Between China and Massachusetts, it looks to be a fascinating couple of days in the financial markets.
Image source: Urban via Wikimedia Commons