The market's climate was totally euphoric. It's nice and easy trading in such a market.
People are still worrying over the Argentina situation.
But for that, prices must fall lower to become attractive for the funds.
If the government does not have a majority (in Congress), getting its tax objectives and other measures approved would not be so easy.
No one really expected a lower rate. It's just that, in the absence of good news, a flat rate added to the profit taking.
The market is scared with the embezzlement scandal. Volume was ridiculously small. If it continues like that tomorrow, the market may tumble.
Uncertainty over Congress alliances is affecting the market. If it is not resolved -- if the president stays without allies there -- the market reaction may be quite strong.
The problem is that all those shares had already risen enough. People who bought them now keep asking: 'Why our stocks are not growing?' - and they are not rising exactly because those people already bought them. The price is high.
This is a technical adjustment; it's too soon to talk of optimism. Some stocks showed healthy gains but they were the ones that lost out most.
Copyright © 2024 Electric Goat Media. All Rights Reserved.