Next Month (August) I hear the ARM's will be coming due. That is going to effect a lot of people negatively. Will the stock market drop because of this
You know the ARMs loan plan was just a bad idea from the start. If it comes and a lot of people can?t pay for their loans then it could have a serious affect in the market, particularly the financial sector. But then again it may not.
Stock have a way of adjusting for the future.
I?m sure there are people who have sold in anticipation of it and if things are better than anticipated it might even go up, even if the news is bad.
There are so many variables, that is why if you are going to try to time the market it is best to trade what you see and not what you think by using things like Technical Analysis. If not and you are a long term holder, I wouldn?t worry about it, but that is just me. No need to fill your life with added stress if it won?t even matter in 5 years.
