With Halloween just around the corner, we thought we would put a list together of the stock market scary stories of 2011. With this type of instability rocking Wall Street throughout the year, investing in Real Estate with a Self Directed IRA or 401k definitely seems like the safest option…
1. Debt Ceiling reached $14.29 Trillion in May:
In May 2011 the Treasury Department said that the debt ceiling of $14.29 Trillion had been reached. They estimated that with “Extraordinary measures” government could function normally till August 2nd 2011, but a resolution MUST be reached by then.
Through late July 2011, President Obama and Congressional leaders argued over raising the debt ceiling to $2.4 Trillion and cutting spending over 10 years. This frightened investors and sent the stock market spinning.
2. Market plunge following Japanese Tsunami:
The March 11th Japanese Tsunami, the largest natural disaster in Japan’s history, sent shockwaves of unease back home to the States with shares plummeting as analysts estimated it as the most expensive disaster ever, costing around $35 Billion.
Investors rushed to sell their insurance shares in fear of high total losses with Insurance indexes in both the U.S. and Europe underperforming in the broader market.
3. The August 4th Stock Market Tumble:
August 4th saw the stock market drop 513 points, the 9th worst decline in history, prompting an estimated $1 Trillion in stock losses in just one day! There was mass migration from stocks and commodities to the ‘security’ of treasury bills. Analysts believe this sell off was fueled by fears of yet another recession, the effects of Europe’s debt crisis as well a leak about a S&P rating drop.
The following day Standard & Poor downgraded the US’s AAA credit rating to AA+ for the first time in history causing further stock market decline and instability.
In a statement released that day, S&P said the following; “The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.”
Turmoil followed with weeks of ups and downs creating a yo-yo effect never seen on Wall Street before.
If your retirement portfolio has taken a beating throughout 2011 with these stock market declines, give us a call so we can assist you with setting up a Self Directed IRA or 401(k) for investing in real estate, a more stable option to grow your retirement plan.
For more information visit www.IRA123.com or call 877-229-9763.