Stocks Face the Storm

Major stock indexes have shown that stock prices have declined and could continue to decline in 2005. The key issues as to why these prices have gone down are speculatively due to the upcoming elections in Iraq and the new spike in oil prices. Investors are nervous that there will be increased violence, that voter turnover will be low, and that there may not be a clear winner. As a shareholder, I would be very hesitant to invest as well at this present moment and do not blame other investors for waiting to see the results of the election. When a new government is being set up in a country, it is important to take things slow and to not judge the entire year's economic growth based on three weeks of declining investments. Furthermore, Iraq should prosper with this new government and there should be economic growth. There are several reports that indicate ecomonic conditions that are due to come out in the next two weeks. After analyzing these thorough reports, we can then determine the accuracy of the stock index.