Daily Investment Interpretations
October 24, 2008
World markets crashed overnight. The Hong Kong Hang Seng fell 8.3%, Japan's
Nikkei Dow dropped 9.6%, (from a 1990 high of almost 40,000!).
the Singapore Straits Times lost 8.33%, and the Seoul Composite shed 10.57%, Not all foreign markets participated in this bloodletting. China's Shanghai Composite only fell 1.92%, (chart below)
and the Australian All-Ordinaries declined 2.73% (see below).
Another way to look at this is that these markets have great potential for a recovery. Sooner or later, they'll come back lean and mean.
European stocks fell more in line with the U. S. markets by about 3% to 5%.
The Dow was tipped to fall by more than 1,000 points today, and U. S. market futures were so depressed that further trading was halted until the markets opened. However, in practice, although the Dow fell 500 points (about 6%) to 8,189.79 shortly after the markets opened this morning, it ended the day down 312 points or about 3.59% at 8,378.95. This is a lower close than its October 10th close 8,451.19 by about 72 points, at no time during the day did it approach the October 10th low of 7,882.51. The NASDAQ Composite relinquished 51.88 points (3.23%) to end at 1,552.03. The S&P dropped 31.34 (3.45%) to land at 876.77. The VIX hit a high of 89.53 before closing at 79.13. Oil fell back $3.69 to $64.15 a barrel in spite of an OPEC agreement to reduce oil production by 1½ %. Gold rose $15.60 to $730.30.
I'll try to add to this tomorrow, particularly with regard to how we might recoup the losses that this bear market has inflicted upon us, and the steps I've taken (and am taking) to recoup my own losses.