In This Issue:
How Will The Obama Presidency
Affect The Investment Markets?
We
had another roller coaster ride on Wall Street last week. Although the first
day wasn't exciting, two others gave us a 553 point surge. On the two remaining
days, the market plunged 930 points. When the shouting stopped on Friday
afternoon, the Dow and the Nasdaq were down 4.1% and 4.3% respectively.
The
latest decline probably put the kybosh on the mid-cycle rally that appeared to
be starting the week earlier, but it's not yet certain. As chaotic as the
markets have been over the past two weeks, stocks were above where they started.
Bear market rebounds often resemble walking up a sand dune where you move two
steps forward and you slide back one. Sometimes it's hard to see if you're
making progress.
On
Monday and Tuesday of this week stocks fell 73.3% and 176.6%, which was well under
half the rate we saw several days ago. Perhaps the bear is running out of steam
and stock prices will bounce back up again. The odds seem good, but bear
rallies are of little use to value investors who benefit from lower prices.
...