The decision by the Eurozone to force bank depositors in Cyprus to contribute towards a bailout, a first in the Eurozone debt crisis, could hurt other peripheral nations, the Euro and the global stock market rally, analysts warned.
The S&P 500 will decline 20 percent from its September high of 1,470 points to around 1,176 points. Poor quarterly earnings from corporate giants such as Amazon (Ticker Symbol: AMZN), McDonald’s (Ticker Symbol: MCD) and Google (Ticker Symbol: GOOG) have hurt investor sentiment in recent weeks.
Heading into the week of August 8, 2011 — there will be no surprise to see a notable sell-off, but one that would create the conditions to jump back in and buy large-capitalization stocks that have been sold down too far.
Lately, some analysts and traders have been predicting there will be another market crash in 2011 and that Wall Street will be once again be exposed to “Insider Trading” scandals, “Ponzi Schemes” and “Fraudulent Companies” making false claims on earnings.