Did you see that the dow dropped like a stone in only the last hour of trade apparently due to remarks made by AT&T and then rumours Countrywide filing bankruptcy (disputed by Countrywide) .The market seems to be reacting more to any negative comment than positive comment which i suppose is what bear markets do. 8th straight loss day for dow - not good. OMO but i think we have hit bear territory until at least the fed announces rate cuts.
Hi aslym You caught me with my hand in the cookie jar... this was one of those "impulse buys". I was mostly in cash yesterday, but bought TOPSBZ (with gamble money) just before the close of the market (when we were 1% up). Although I must admit that I am a bit short-term bearish at the moment with all the negative sentiment and the fact that markets don't react to good news. I'm planning on selling very soon and then remaining in cash until all this fog clears.
what worries me is how fickle the us sentiment is that they are looking at talk like that whilst most business are still fundamentaly intact- i am quite sure that they are insured against non payment thus limiting their losses to around +- 3% ie the charges of the insurer as well as rate increases- i get the feeling that they have been caught with their pants down or hand in the cookie jar??
LN. This is something that always confuses me. Just because there is a stock market crash, why should this lead to a recession? I guess it's because suddenly there isn't so much liquidity floating around and therefore people "feel" that there isn't more money, although people are still getting salaries and are still spending. Or maybe it is because there isn't lots of debt availability and therefore spending slows down. If this is the case, then it just shows you that in this day and age to make money there has to be borrowing, althought that doesn't mean that we need to be net borrowers :)