It’s been a busy few weeks in the markets. We have had the Facebook IPO, which was disastrous. I have repeatedly mentioned I felt the $104bn valuation is ridiculous and totally unjustifiable on a company making $1bn a year. I would personally value it around $8/share. It appears the market seems to at least somewhat agree with me as it’s down over 30% from it’s initial IPO price.
Oil has been making multi-month lows. I have traded oil many times in the past via the ETF XES. If it gets much lower this trade will become increasingly attractive.
There’s still lots of fear regarding the Eurozone and Greece especially, this is clearly weighing on traders minds. This saga seems like it has been going on forever now. We need a resolution.
We also had the US jobs numbers out on Friday, which came in at 69,000 new jobs created, much lower than what the markets expected. This sent the markets tumbling. Things may be beginning to falter with the US economy, though I think it’s probably too early to tell.
All these factors have caused investors to flood into US Treasuries, with the 10 year note making records lows of under 1.5%.
We also saw the Dow Jones Industrial average drop to just above 12,000. We briefly entered correction territory. This is where the price moves more than 10% below the recent high. There has since been a bounce though.
I’ve also been busy reading posts in the personal finance blogosphere this week and come across some really good ones. Some of my favourite reads have been:
PT Money posts Financial Advice that No Longer Rings True
Mike from The Financial Blogger posts Do You Need Money To Make Money?
Jason Price from One Money Design posts What are Your Biggest Obstacles to Saving Money?
Peter from Bible Money Matters posts Can You Afford Your Lifestyle?
Pierre from Intelligent Speculator posts Teaching Your Kids To Become Great Investors,
Amanda from MyDollarPlan posts How to Splurge on a Budget
Drew from MyDollarPlan JP Morgan Chase Lost $2 Billion… Is it a Big Deal?
A guest blogger on TheDigeratiLife posts about getting a financial education in your 20s.
Have you read any interesting posts online recently in the personal finance space? I’d love to hear about them.