Current Event.... (again)

Here is yet another current event about the stock market.

Article: "Stock rebound on Citi talk," from CNNMoney.com

Here is the link:
http://money.cnn.com/2008/11/21/markets/stockswatch/index.htm?postversion=2008112109


Current Event

Stocks rebounded Friday with talks of Cit bank putting itself up for sale. This talk boosted stocks a little bit on Friday. This was needed because of the severe drop on Thursday to their stock and many others. The company has lost more than $20 billion in the last four quarters. Just to show the volatility of the market, their stock jumped 6% just because they were considering putting themselves on the block. Others are talking of the same thing as Citi. Washington Mutual, or WAMU, is cutting 1,600 more jobs near San Fransisco, Bringing their total employment to merely 11,000 people. Dell is also in the mix saying that because of the economic situation people are cutting on technology spending. Oil, However, is back up 50 cents to $49.92 a barrel. Gas price's average has slipped below two dollars to $1.989 for the national average.

I wrote this writeup on Thursday night of the week before break. But i still think that it is crazy that things, like just talk of sale, can make a stock rise 6% the very morning. People just plain don't know what to do in today's market. I see what the are thinking in this situation. They think that if Citi is bought, then the stock price will go up because they aren't in financial trouble at that second. that is when people plan to sell, PLUNGING the stock price to lower than what it was before they were bought out. The volatility of today's market falls completely on the people's indecisiveness and emotions. Emotions aren't supposed to be a part of investing because it normally turns out for the worse.