| It looks as though it'll take more than a nuclear | | | | some of the strongest growth the global |
| bomb to thwart the North American penny stock | | | | economy has posted in the past 30 years. |
| markets. | | | | Is there something that could make the markets |
| The world's loopiest dictator announced last | | | | sit up and take notice? Many economic analysts |
| weekend that he detonated a nuclear bomb. How | | | | point to a political crisis that interrupts oil |
| did the global markets respond? They didn't even | | | | supplies...or has the potential to interrupt. |
| hiccup...maybe they yawned. | | | | But even that seems unlikely, at least in the short |
| Geopolitical tension has become commonplace. | | | | term. Oil fell to an eight-month low this week |
| And the markets are used to it. | | | | even as OPEC vowed to cut production for the |
| While the South Korean won and stock market | | | | first time since 2004. Crude oil slipped 93 cents in |
| and the Japanese yen came under pressure | | | | New York to close at $57.59 per barrel earlier this |
| earlier this week on news that Kim Jong-il had | | | | week; the first time it's dipped below $58 since |
| (apparently) tested the bomb, fallout in other | | | | Feb. 15. |
| financial markets was minimal. | | | | Why? There are a number of factors contributing |
| "It's like investors are saying, 'Wake me up when | | | | to oil's recent dip: rising crude inventories around |
| the bomb is actually falling,'" noted one senior | | | | the world, a slowing global economy, lower |
| economist. | | | | demand after the summer driving season, and a |
| Thanks to the situation in Iran, Palestine, and | | | | weaker hurricane season. |
| Lebanon, penny stock inventors have become | | | | In addition, in September, a consortium of oil |
| accustomed to the daily geopolitical trysts. As a | | | | companies announced it had discovered 15 billion |
| result, our tolerance level has risen significantly. | | | | barrels of oil and gas reserves in the Gulf of |
| By the middle of the week South Korea's Kospi | | | | Mexico. That's equivalent to half of America's |
| stock index had gained 0.7% and Japan's Nikkei | | | | reserves. |
| had risen 0.3% to a five month high. In North | | | | Despite a nuclear North Korea, ongoing geopolitical |
| America, stock markets were steady. | | | | tensions, and warnings of an economic downturn, |
| By Thursday, the Dow Jones industrial average | | | | analysts remain confident that the stock market |
| crossed 11,900 for the first time, buoyed by | | | | will stay strong in the months ahead. |
| optimism that earnings would be strong, despite a | | | | And for any penny stock investor, those are |
| slowing economy. | | | | encouraging words as we head into the fourth |
| It helps too that the tensions in North Korea and | | | | quarter...which for many companies, is their |
| other corners of the world have come up against | | | | strongest quarter of the year. |