The Dow Jones average fell 265 points as investors speculated about a further weakening world economy. Just one day after the Federal Reserve decision to reinvest principal payments on mortgage holdings into long-term Treasury securities, the Dow Jones Index did not rally and bears seemed to outnumber bulls on the major indexes.
Questions remain about the strength of the economy, taxes, international credit markets and leadership regarding economic change in the U.S.. No economic steward or frontman is leading the charge to convince markets that U.S. spending will decrease, GDP will rise and unemployment will decrease. Although markets are noisy in the short term, until economic indicators rise, there may be no reason for investors to get excited. The Dow Jones has lost one third of its gains from July.
