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Worst Week In Stock Market History

Unless you’ve been living in a cave for the last week you know that the economy is in deep trouble and it looks like no matter what anyone does, it’s not going to do any better. This has been the worst week in stock market history. The DOW drops over 6% in this week alone, as the NASDAQ falls 9% and look what happened to the S&P 500, it dives 9.4%.
The week started off bad on Monday (it was the worse of them all) by dropping 777 point on the DOW. Congress couldn’t leave their feeling at home that they went ahead and voted against the “invest In America bill (mostly because Nancy Pelosi can’t shut up) that would have help the American people and gave a little confidence to Wall Street. We heard all week from the politicians that Wall Street and Main Street are two different groups of people. Let’s see how different they are when the residents of Main Street get their 401K statements by November 3rd and realize that their portfolio has shrunk quite a bit in this quarter (which ended September 30th).
We listened as Citigroup bids and signs the papers to acquire Wachovia, only to see Well Fargo came in with a better offer. Now Citigroup has filed a lawsuit against wachovia because of this issue. All the while the rest of the financial sector takes a slow ride downward all week long. To add insult to injury, when the bill was finally sign by Congress today, Wall Street, with it’s good solid gains for the day, took it all back and then some. For what reason, I don’t know. I guess Wall street lost that confidence they had while waiting so long for Congress to come back to the table.
So what’s to come next week for the markets? More of the same, I would guess since it’s so evident that we are in a recession/depression period, the smart money is going to start moving their money into more stable vehicles (bonds and such). I myself think that’s a pretty good idea at this time. If you have capitol tied up in stocks, you may want to take good hard look them and see which ones are one that you shouldn’t have during a recession. I’ve read a lot of articles that say that the way to go right now is consumer staples (McDonald’s, Pepsi, Johnson & Johnson etc.). If you own any, hold on to them. If you’re in a stock that is sensitive to the price of commodities, then it might be time for you to sell into any rally you get. Remember, the old saying… “cash is king”. But then again, who knows what’s going to happen to the almighty “greenback”.

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