Will the stock market plung when ratings of mortgage-backed-bonds are lowered?

Discussion in 'Trading' started by crgarcia, Jul 16, 2007.

  1. S&P, Moody's and Fitch have warned that they may lower the credit ratings of subprime-backed-bonds.

    When they actually lower the ratings, will we see a plunge? a correction perhaps?
  2. the opposite will happen, stocks will soar and the DOW will be up another 20% within 3 months.
  3. No it wont it is only going up medium term