It has been a wild couple of weeks on the global markets. But is the latest slide grinding to a halt…or just taking a breather before tumbling some more? And rather more importantly, what does it mean to shrewd penny stock speculators?

The Street latterly stumbled to its worst week of the year, and world stock exchanges slid significantly on worries about rising rates and slowing expansion. After rising virtually 9% in the 1st 4 months of the year, the Dow business average has fallen about 6.5% from a six-year high, reached May ten, 2006.

Stocks have been hurting because penny stock stockholders fear the Federal Agency might be so targeted on inflation that it ignores indications of an industrial slowdown, raises IRs too high and sends the economy into a recession.

Global stock markets were sent reeling last week after golden-tongued U.S. Federal Reserve Chairman, Ben Bernanke shocked penny stock investors in saying the Fed will continue raising interest rates to keep inflation in check.

And that call will have a direct effect on the penny stock exchange. Higher rates hurt penny stock costs because speculators believe it’ll curb business expansion and corporate profits.

But why is inflation heating? Higher energy costs. Traders and penny stock backers are also concerned that with the hurricane season officially under way, Gulf Coast refineries and oil production sites might be damaged again this summer and fall.

And higher interest rates have the ability to affect the entire economy. Finance charges on credit cards will rise. So too will rates on mortgages and home equity loans, putting additional pressure on home buyers and a softening housing market. Ultimately, it will cost more to borrow for expansion.

But does this signal doom-and-gloom for the penny stock exchange?. While the enticement to sell everything can be overpowering, some see this as an amazing opportunity. „I wouldn’t be selling. I’d are buying,“ recounted one Long Island researcher.

So how exactly is this an opportunity? It just so happens that many companies caught in the market’s downward spiral are cheaper than they were a few weeks ago. And as any seasoned penny stock investor will tell you, buying a great penny stock when it’s been beaten down isn’t a bad way to make money over the long haul.

If you can stomach some of the volatility that is. While many blue chip speculators have trouble handling the market’s unpredictability…it’s par for the course.

So, „snap out of it,“ said another watcher. A month of dizzying selling has brought the markets into an attractive range. Is it possible the markets will fall more? Absolutely. After all, no penny stock is a sure thing. But one thing is certain: „Stocks are much cheaper now than they were two months ago.“

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