World stocks took a beating Monday after the weak U.S. economic news sent investors away from stocks. They fear a global recession.
The economic conditions in Europe and Asia are weak to compound the issue.
17 countries that use the euro are at 11% unemployment, which is where the U.S. would be on the U-3 number if millions had not dropped out of the work force entirely.
China manufacturing is weakening and that presents a serious problem.
The U.S, added a paltry 69,000 jobs in May and hiring in March and April was considerably weaker than originally thought. Unemployment is up to 8.2% from 8.1%.
There was a sell-off that will balance things according to some traders. It takes the pressure off selling and the short-term bottom will be there.
Prices for industrial metals (like copper and aluminum) fell. Heavy industrial shares fell.
The euro fell to $1.2420 from $1.2424. The dollar fell to 78.03 yen from 78.08 yen.
Both Faber and Siegel agree that the negative real bond yields leave little choice but to invest in stocks. Nether agrees on Europe and whether it is or is not in a recession. Siegel believes the economy will keeping growing.
Source: ABC News and CNBC