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It's been a wild and woolly couple of weeks on the international stock markets. But is the recent slide grinding to a stop or just taking a breather before tumbling some a lot more? And furthermore, what does it mean to astute penny stock investors?

Wall Street just recently stumbled to its worst week of the year, and global stock markets fell dramatically on concerns about rising rates of interest and slowing growth. After rising practically 9% in the first 4 months of the year, the Dow Jones industrial average fell about 6% from a six-year high.

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

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

And that decision will have a direct influence on the penny stock market. Higher interest rates hurt penny stock prices since investors believe it's going to curb economic development and corporate earnings.

But why is inflation heating up? Higher power costs. Traders and penny stock investors are also worried that with the hurricane season basically under way, Gulf Coast refineries and oil production sites could be damaged once more this summer and fall.

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

But does this signal doom-and-gloom for the penny stock industry? When the temptation to sell everything might be overwhelming, some see this as an excellent opportunity. "I would not be selling. I would tend to be purchasing," said one New York analyst.

So just how is that an opportunity for a money raise? It just so happens that numerous businesses caught in the market's downward spiral are cheaper than they were a couple of weeks ago.

And as any seasoned penny stock investor will tell you, shopping for an excellent penny stock when it is been beaten down is not a bad way to make money and boost business capital over the long haul.

For more details about stock trading, search: capital pacific.

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