Photo: AP
This was not a good month for financial markets as gloom returned like clockwork in the month of May. There are a lot of statistics and charts that can demonstrate why market sentiment has soured, but here are the three numbers that best describe the mood.
1.56%
The benchmark 10-year U.S. Treasury yield reached a record low on Thursday. The flight to safety became a stampede as investors panicked over the debt crisis in Europe and the soft job market in the U.S., parking their cash in U.S. government bonds—even if they are essentially receiving next to nothing in return.
$26.83
Facebook’s stock hit a new low on Thursday. The stock is now down about 29% since its IPO two weeks ago. Facebook was supposed to represent the kind of entrepreneurial success story that is America’s best hope for pulling itself out of its current economic problems. Instead the IPO has further undermined confidence in the stock market and thwarted IPOs for other emerging companies.
$1.2356
The euro fell more than 6% in May to its lowest level since the start of July 2010. Investors are coming to believe that it’s a real possibility Greece will exit the euro and that the European Central Bank won’t backstop large Spanish banks that are teetering. The euro zone is a mess.
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