Tuesday, May 11, 2010

Gold101.com - SEC looks into mysterious stock plunge

People who are wondering about the stability of the stock market got little reassurance this week as the Dow Jones Industrial Average suddenly plunged 1,000 points Thursday afternoon - a development that some are blaming on a trading error.

Soon after the market mysteriously dropped for a short time on Thursday, the Securities and Exchange Commission announced that it was working with other regulatory bodies to review "the unusual trading activity" that had taken place. The SEC added that it would make public the findings of its review, along with any recommendations that may come up in the process.

The market closed down about 370 points on Thursday and at one point nearly $1 trillion in wealth was wiped out by the plunge. Media speculation on Thursday suggested that an unnamed trader had accidentally sold 1 billion shares instead of 1 million.

Even without any suspected trading errors, the markets have been rattled this week by the sovereign debt crisis in Europe and related stories like civil unrest in response to Greek deficit-cutting measures, and concern about the long-term effectiveness of a bailout for Greece.

In light of the current conditions in the stock market, dealer gold is one attractive investment option to consider.