Stock Market Plunged Yesterday

The Dow plunged 228 points yesterday, losing almost 2% of its value in a single day as fears of slowing growth in China, continuation of the European debt problems, and the worsening unrest in the Middle East fueled concerns of a new energy crisis led by oil prices.
http://www.cnbc.com/id/42006905

Stocks closed near session lows, and below psychologically important levels, as global worries triggered by European sovereign debt and a slowing in Chinese growth escalated after news of violence against protesters in Saudia Arabia.

At the start of the session, investors were shaken by Moody’s downgrade of Spain's rating and from news out of China of a surprise trade deficit of $7.3 billion in February—the largest gap in seven years—and its first since March 2010. The unexpected news of a deficit sparked fear of a global slowdown that affected oil as well as other commodity prices.

Those who tell you the global economy is recovering nicely must be smoking something. The market cannot simply keep rising forever, especially as inflation hits us harder and harder. With fuel and food prices rising across the nation, and with core inflation rates poised to rise as well, look for reverses in this seemingly never-ending race to the stratosphere that the market has been engaged in.

Oh, don't get me wrong, I love prosperity. But look around you... do we HAVE prosperity? With unemployment still high (despite the artificial decreases in recent months), inflation threatening, and our nation mired in an inevitable debt crisis, does that sound like a recipe for a booming stock market to you?