Friday, May 7, 2010

Wild ride in the stock market

For those who missed the wild roller coaster ride in the stock market on Thursday, this video gives you a seat at the front of the car. Jim Cramer of CNBC's "Mad Money" caught the problem with Proctor and Gamble's stock. Buying P&G when Cramer caught the glitch would have made a nice return for those with the foresight to get in while the car seemed to be coming off the track. I personally don't have the stomach for those wild rides.

During the heat of the slide in the market, most news channels had a split screen showing turmoil in Greece. While the error in listing the P & G trade may have been the immediate trigger of the nearly 1000 point dip in the market, it is clear there is plenty of fear in the market.

Expect the Hung Parliament resulting from the General Election in the UK to intensify the fear.  Because the Conservative Tory party failed to get a clear majority, Gordon Brown as Prime Minister has first opportunity to form a government despite the fact his party lost 85 seats as of now.  There will be some uncertainty as to who becomes the Prime Minister for some time.  It is possible the Labour party led by Brown could form a coalition with the Liberal Dems led by Nick Clegg to allow Brown to hold his office.  The UK needs someone to make serious cuts or they face a future like Greece.  I think it is possible to see a few more wild rides like the one we see in the clip in the near future.

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