Stock resource site The Street.com recently reported more dismal results for stock performance, citing continued troubles in the European Union as a major factor. This news comes as the first fiscal quarter of 2012 ends with stocks finishing well below projected levels.
The article also states that “disappointing news on job creation in March” is contributing to falling numbers in the Dow, Nasdaq, and S&P 500. “Fear has a large role in stock performance,” says Jeffrey Sica, president and chief investment officer of Sica Wealth Management. “Financials last quarter were disappointing and this quarter will be worse,” he said.
This news is troubling, though not unexpected. Since 2008, stocks have plummeted, the housing bubble burst, the value of the U.S. dollar has fallen, and purchasing power has declined due to inflation. Stocks and bonds performance in recent years has been unpredictable at best. Investors have lost tremendous value from their savings and retirement accounts, and many continue to turn to gold and silver to hedge against the unstable economy.