January 21, 2008
Markets around the world have dropped sharply today and we've been spared only because it's a holiday. The Dow Futures as I write are down around 520 points, the Nasdaq down 76 and the S&P 500 down 60 points. Articles are saying markets are "plunging" which helps sell newspapers and adding to the fear aspect in individual investors. There's probably no way we can skirt a real lousy day tomorrow unless maybe the Fed comes out before the opening bell and tells us the rates are being cut drastically. Fox News is predicting that the market (Dow) will fall at least 500 points tomorrow morning. How they know, is beyond me. But all of this feeds into the hysteria.
So there's probably no way to avoid would could turn out to be a horrendous day tomorrow. We have been through times like these before - 1987, recession in 1991, the Long Term Capital default, the S&L crisis, the dot.com bust and of course 9/11. The markets have always come back, but it's always painful going through it. I found several articles today that are talking about the current situation that are listed below. It could be that tomorrow will be the capitulation day when everything crashes and burns. If you remember, last week I sent you an email saying it could come last Friday or this week or sometime soon. Well, maybe it's here and I for one would like to get it over with. Let's keep our fingers crossed. Soon there should be some real bargains out there. I guarantee you that the big boys are just waiting like vultures to buy on the cheap. Have a good day tomorrow.
Pete
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