Dollar, Bonds and Stocks Fall

Jupiter, Fla. (PRWEB) March 14, 2008 -- Sean Brodrick takes a closer look at bull markets in the U.S. and warns of what can be expected. Mr. Brodrick examines the stock, dollar, and credit markets in the U.S. and all the problems they are facing.

The recent action on Wall Street is enough to send shivers up the spine of even the biggest bull. Despite the Fed-induced rally on March 10, the U.S. has multiple bear markets closing in simultaneously.

The stock market is facing multiple problems including a slowing economy, housing bubble implosion, credit crisis infection and deteriorating earnings for many sectors. Corporate earnings per share for the S&P 500 declined 4.2% in 2007. This happened despite the fact that most analysts had a positive outlook for the year at the end of 2006. Many analysts expect earnings for the S&P 500 to recover in the second half of 2008. However, not all sectors are performing the same. Financials are getting pummeled mercilessly while the energy sector looks like it's still in a bull market. But there's plenty to indicate the broad market could go lower in a sell-off that could last a long time.

Also, the U.S. dollar index, which compares the greenback to the world's major currencies, has fallen about 15% in 2008 and is near its lowest levels ever. Recession fears are driving the dollar lower as jobs disappear, home prices fall and consumer confidence plummets. And the Federal Reserve isn't helping. The market is betting the Fed will lower interest rates by 50 to 75 basis points at its meeting next week. That lowers the yield on the dollar versus other currencies, helping grease the skids to send it even lower.

Lastly, do not overlook the Credit Markets because they are at their worst in decades. Mike Larson is one of the best brains concentrating on the credit markets. He recently stated:

"We aren't 'entering' a bear market for credit. We're already embroiled in a world-class credit market 'perfect storm' the likes of which we haven't seen in decades."

"First the U.S. had a subprime mortgage crisis that was supposed to be 'contained,' only it went on to infect the rest of the credit markets. Next, asset-backed commercial paper was sent through the shredder. The municipal bond market was rocked by bond auction failures, and then the mortgage loan giants, Fannie Mae and Freddie Mac, ran into trouble. And recently, JPMorgan Chase described what's happening as a 'systemic margin call,' in which the whole financial system is facing demands to come up with cash it doesn't have," Mr. Brodrick states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspx?Commodities-Investments-Shine-But-Dollar-Bonds-and-Stocks-Fall-1529

About SEAN BRODRICK & MONEY AND MARKETS     

Sean Brodrick joined Weiss Research in 2000 as an analyst, bringing more than 25 years experience as a journalist and financial analyst to the position. He is Weiss Research's small-caps specialist, especially in natural resources, and is the editor of the company's Red-Hot Canadian Small-Caps, as well as a regular contributor to its daily e-letter, Money and Markets.

Previously, Mr. Brodrick was the investment director of The Sovereign Society, the world's leading publisher of offshore asset protection strategies and global investment opportunities.

Recognized for his expertise on Canadian and Australian investment opportunities, Mr. Brodrick has been featured on many financial talk shows, including CNBC Squawk Box and Bloomberg Market Line. He is a weekly guest on Market Matters Radio, a contributing columnist to MarketWatch.com and a frequent commentator on one of Canada's premiere financial websites, HoweStreet.com. His report, "70 Days to Empty," has garnered acclaim for its analysis of the forces pushing America toward its next oil crisis and was described by

The Daily Reckoning as "the most important report you're likely to read this year," while his knowledge of uranium has helped investors earn solid gains on the commodity.

Mr. Brodrick holds a B.A. degree from the University of Maine.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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