Indian and U S Investors are preferring wait and watch mode

Thebullishtrends: Indian stock markets closed today with marginal losses. As Investors are adopting the wait and watch way. As reported on CNN’s financials, the US markets are expected to remain subdued due to the concerns over financial stocks. The shares of US’ largest mortgage financing companies Freddie Mac and Fannie Mae plunged by 24% and 13% respectively yesterday while concerns were raised as to whether the government would be willing to bail them out, if these financial behemoths were to fail akin to Bear Stearns. Worries about the health of financial companies in the US continue to cloud investor sentiments globally as rating firms are now leaving no stone unturned in expressing their displeasure with their clients’ risk profile.