Market Fluctuation - Black Enterprise
Black Enterprise Magazine January-March 2019 Issue

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Market Fluctuation

Stock predictions for the first week in August do not seem too promising.


Early last week, the economy seemed to improve slightly after President George W. Bush signed into law a $300 billion bill aimed at rescuing the housing market. The bill also included a rescue plan for bleeding mortgage finance firms Fannie Mae and Freddie Mac. But by Friday, the Dow had dropped 51.7 points and the Department of Labor reported that employers cut 51,000 jobs in July.

Also adding to the bad news, the auto industry’s annualized selling rate for July decreased to 12.6 million vehicles, the lowest since 1992. Sales of cars and light trucks at Chrysler, Ford, and GM fell by 29%, 26% and 15%, respectively. Chrysler says it plans to cut 1,000 white-collar posts by the end of September. After posting a $15.5 billion quarterly loss, GM shares closed 84 cents lower to $10.23.

In addition, Standard & Poor’s Case-Shiller Home Index reported that prices for homes fell 15.8% in May, the most since 2001.

Instead of a recession–which requires two straight quarters of negative growth for gross domestic product (GDP)–analysts are calling the current situation an economic slow down. Many believe that speculation from institutional investors is driving energy prices higher.

“The good news is oil prices came down quite a bit,” says Eugene Profit, CEO of Profit Investment Management (No. 14 on the BE 100s Asset Managers list with $1.4 billion under management). “The bad news is no one expects for them to stay down for long.” Additionally, Profit says housing sector improvement won’t be seen until 2010.

From day to day, oil prices and stock points are rising and falling on the New York Mercantile Exchange. “The good news is oil prices came down quite a bit,” says Eugene A. Profit, CEO of Profit Investment Management (No. 14 on the BE 100s Asset Managers list with $1.4 billion in assets under management). “The bad news is no one expects for them to stay down for long.” Also, Profit says, housing sector improvement won’t be seen until 2010.

In response to the lagging markets in the U.S., India and countries in Africa have instructed their farmers to reduce production and decrease exports so that the demand for oil–both crude and corn–will not affect the prices in their countries.

“As exports shrink and imports grow, the deficits [will] get larger until we get our house in order,” says Maceo Sloan, CEO of Durham-based NCM Capital (No. 6 on the BE 100s Asset Managers list with $2.9 billion in assets under management. “Hopefully it doesn’t fall to the point where the world doesn’t think the dollar is how currency should be judged.”

The dollar remains weak because the Federal Reserve Board is reluctant to increase interest rates at a time when a rise may send consumers further into hibernation. “But if they lower interest rates they weaken the dollar further and that is inflationary,” Profit says. “So we

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Marcia Wade Talbert

Marcia is a multimedia content producer focusing on technology at Black Enterprise Magazine. In this capacity she writes and assigns stories to educate readers about social media; digital integration; gadgets, apps, and software for business and professional development; minority tech startups; and careers in STEM (Science, Technology, Engineering, and Mathematics). In 2012, she received two Salute to Excellence Awards from the National Association of Black Journalists and was recognized by Blacks in Technology (BiT) as one of the Top 10 Black achievers in the tech arena for 2011 at SXSW in Austin, Texas. She has spoken about technology on panels for New York Social Media Week, at The 2012 Rainbow/PUSH Wall Street Summit, as well as at Black Enterprise’s Entrepreneurs Conference and Women of Power Summit. In 2011, chose her as one of 28 People of Color Impacting the Social Web, and through crowdsourcing she was listed as one of BlackWeb2.0's/HP's 50 Most Notable African American Tastemakers in Social Media and Technology for 2010. Since taking on the role of Tech editor in September 2010, she has conceived and produced five cover stories on Technology and/or STEM and countless articles, videos, and slideshows online. Before joining as an interactive general assignment reporter in 2008, she freelanced with Black Enterprise beginning in 2003 while working as the technical editor at Prepared Foods magazine. There she further honed her writing skills and became an authority on food ingredients, including ingredients used in food fortification and enrichment. Meanwhile, her freelancing with Black Enterprise and helped her stay current on issues pertaining to the financial and business welfare of African Americans. As a general reporter for Black Enterprise she attended and reported on the Democratic and Republican National Conventions, where she interviewed Valerie Jarrett, senior advisor and assistant to President Barack Obama and U.S. Attorney General Eric Holder. Marcia has a Bachelor of Science degree in Agriculture with an emphasis in food science from the University of Minnesota, and a Master of Science degree in journalism from Roosevelt University in Chicago. En route to her secondary degree, she served as the editor-in-chief of the Roosevelt University Torch, a weekly, student-run newspaper. An avid photographer and videographer, Marcia is one of several employees at BLACK ENTERPRISE who interned for the publishing company as a college student. She lives in New Jersey with her husband, a food scientist; her seventeen-month-old daughter; and “The Cat”, but still considers Chicago home.