Daily Investment Interpretations
July 9, 2008
2008-7-9: "Tune in tomorrow for the next exciting episode." Ah, and what an exciting episode it has been! The S&P 500, which closed up 21 points yesterday, ended down 29 points today, putting it off 20% and firmly in bear-market territory at 1,244.69. The Dow skidded 237 points, putting it at 11,147.44, and off 21% from its October high. The Nasdaq Composite plummeted to 2,235... still 80 points above its March 17th low, but 21% below its October high. So it's now a clean sweep, with all three of the major indices in bear country. Michael Ashbaugh has just published a very gloomy forecast for the markets in which he notes that, "market sentiment remains stubbornly complacent, suggesting further downside is likely in order". Iran's missile launch demonstrations helped boost the price of crude oil a bit, while financial companies planned for additional, previously unannounced losses. And the VIX? It's at 25. Hey! What's to worry about, just because we've got a major bear market going?