The quest for the bottom in the markets continues after the Dow lost big again. Yesterday, stocks got pummeled by over 400 points despite recovering a quarter of that value at the end of today’s trading. Despite seeing credit markets beginning to thaw with constant government infusion to improve liquidity, this time it is the real economy that is doing the beating on equities.
Negative earnings from various companies dampened investor confidence and reinforced the belief that America is indeed headed for the inevitable – recession. What is interesting is that the gloomy earnings outlook goes across the board; from transports, pharmaceuticals, and technology, in addition to the already battered financials and energy sectors.
Here at home, workers at expected to brace a holiday season possibly without their traditional Christmas bonuses. Fears that many Filipino overseas workers might get laid off in their jobs abroad is getting more real. This puts pressure to our foreign reserves as remittances are expected to drop. Government also needs to tackle a new set of safety net measures in order to provide livelihood opportunities to the workers who will be going back home.
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