Yesterday seemed like a fairly typical day on the surface for the global financial markets. Equities sold off in the morning, but then rallied back by afternoon. Then at about 3:00 P.M. or so the rating agency Fitch came out with a statement suggesting the European financial crisis could have a material impact on the banks in the United States. This seems like a forgone conclusion on the surface, but the markets once again reacted to the headline news and immediately sent stocks plummeting. We have to remember that we are living in a time where individuals and institutions sell first and ask questions later.
Ever since Standard & Poors downgraded the United States back in August the rating agencies have taken center stage again just as they did in 2008 and 2009. However, I believe that after completely missing the boat several years ago they do not want to make the same mistakes again. With this in mind, you can expect Fitch, S&P, and Moody’s to be in the news constantly trying to redeem some of their reputations.
These markets today are some of the hardest to navigate, so please try to stay in constant communication with your financial advisor.
Eric Marvin
Financial Planner in Fort Myers, FL
JPT111711-1875
