Over the past few weeks, we have seen the Stock Market be extremely volatile. It has gone down dramatically and have come back up the same way. Whenever you hear something about an economy at home or abroad, the stock markets plunge, and when more news comes out, the prices stabilize almost as quickly. And whenever stock prices fall, Gold prices soar. Earlier today, Gold prices hit a record high of $1,830 per ounce. Gold prices have doubled since 2007 and it is almost up 20% since this past June.

Today the Dow Jones Industrial Average fell 445 points (or 3.9%) an hour after the opening bell. It was reported to have been down 528 points earlier. It was down below the 11,000 mark for quite some time. It has gone back up at this time but the market today is very volatile and I would not be surprised if the Dow Jones went back below 11,000 and stayed there by the time the markets close later today. It has already happened several times in the past few weeks and unless something big happens in the global economy, it’ll most likely happen again over the coming weeks.

The S&P 500 fell 4.2% (or 49 Points) and the Nasdaq Composite fell 112 Points (or 4.5%). The price of crude oil also dropped almost $4 to $83.63 in the fear that the weaker economy will equal less demand for the product. This won’t affect gas prices too greatly, it may go down a few cents as it has during almost every drop this year.

This is not the end. This is what volatility is. The Stock Market is experiencing extreme mood swings and even though the it’s down almost 400 points right now, it will go back up and then go back down again. News about more crisis in the US and Europe will continue to come in, inflation will increase prices of every day items that we buy, and it’ll keep happening until all the debt issues are solved, and personally, I don’t see it happening any time soon because of the lack of cooperation we have been seeing in governments.

Until then, we can only sit back and watch. We’ve seen recessions like this several times in the stock market’s history, even though it may not get better tomorrow or next week, but it will get better eventually and then we can all leave this turmoil in our past.

 

Update 4:14PM:

The Dow Jones finished at below 11,000 points at the closing bell with 10,990 dropping more than 419 Points. . The Nasdaq Composite drops 131 points finishing off at 2,380. And the S&P 500 drops 53 Points finishing off at 1,140.

Price of Oil drops even more for a total drop of $6 so far today for a current price of $81.61.

We will have to see whether the big drop continues onto tomorrow or whether things bounce back like it has recently after a big drop like we experienced today.