Daily Investment Interpretations
November 10, 2008
Caveat: I want to emphasize that I absolutely don't know what the stock market is going to do next. I read what I can and after that, it's a judgment call.
Today was what passes for a quiet day. The NASDAQ fell 30.66 (-1.86%) to
1,617, the Dow lost 73.27 (-0.82%) to close at 8,871, and the S&P
closed down 11.78 (-1.27%) to 919. Oil ended at $60.80, and gold added
$12.30 to hit $746.50. The VIX jumped to a somewhat more nervous 60.
Today, Deutsche Bank downgraded GM to "Sell", driving the penultimate nail in GM's coffin: GM's road to nowhere. GM stock dropped $1.00 a share to $3.36 a share, down from $44 a share last October, and $92 a share in 2000. Also, Circuit City filed for bankruptcy today.
Meanwhile, Blue Chip Economic Indicators predicts that this current recession will be longer and deeper than the 2001 or 1990-1991 recessions.
Surprise! Starbucks shares are under pressure. (I'd expect Starbucks to be a poster child for an upscale boutique that would be hurt by a belt-tightening recession. I should think that it would be the sort of luxury that you wouldn't eliminate, but might curtail if you were watching your pennies.)
Also, Goldman slashes Indian growth forecasts. Two other articles are: Hulbert says Camelot wasn't that shiny and Paul Farrell's King Henry's bailout like Rummy's Iraq. Also of possible interest: Tempting yields for brave ETF investors.