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 worldwide exchanges dropped seriously on fears about rising rates and slowing expansion. After rising virtually 9% in the 1st 4 months of the year, the Dow economic average has fallen about 6.5% from a six-year high, reached May ten, 2006.

Stocks have been ailing because penny stock investors fear the Fed could be so focused on inflation that it ignores signs of an economic slowdown, raises interest rates too high and sends the economy into a recession.

World markets were sent reeling last week after golden-tongued U.S. Fed Reserve Boss man , Ben Bernanke surprised penny stock stockholders in exclaiming the Federal Agency will continue raising IRs to keep inflation under control.

And that call will have a direct effect on the penny stock exchange. Raised interest rates hurt penny stock costs because backers believe it will curb business expansion and company profits.

But why is inflation warming? Higher energy costs. Traders and penny stock financiers are also concerned that with the hurricane season officially under way, Gulf Coast refineries and oil production sites may 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 market?. While the temptation to sell everything can be overwhelming, some see this as a great opportunity. “I would not be selling. I would tend to be buying,” said one New York analyst.

So how precisely is this a break? It just so occurs that many firms caught in the market’s downward spiral are cheaper than they used to be a few weeks back. And as any seasoned penny stock financier will tell you, buying a great penny stock when it has been beaten down is not a bad way to earn income over the long stretch.

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.

Hence “snap out of it,” claimed another watcher. A month of dizzying selling has brought the markets into an fascinating range. Is it feasible the markets will fall more? Fully. In fact, no penny stock is a sure bet. But one thing is absolutely certain : “Stocks are much less expensive now than they were 2 months ago.

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