Searching for the bottom
Monday started out fairly promising with the markets moving up. But they couldn't maintain. The markets rallied twice but pulled back.
The money flowed - as it typically does - away from riskier small cap stocks and towards more solid large cap stocks. Which means small cap stocks will rise once the market decides to bottom.
Right now, signs are that the bottom is in. In all likelihood it is.
The Dow fell 730 points or 6% in just a tad over 1 week. NASDAQ fell 7%.
This volatility is indicative of a turning economy and the reactions. I personally think that the housing industry misled everyone as long as possible. That plus the idiocy of most analysts meant that only when it was obvious that the sky was falling did these clowns admit it. That creates panic in the system.
The money flowed - as it typically does - away from riskier small cap stocks and towards more solid large cap stocks. Which means small cap stocks will rise once the market decides to bottom.
Right now, signs are that the bottom is in. In all likelihood it is.
The Dow fell 730 points or 6% in just a tad over 1 week. NASDAQ fell 7%.
This volatility is indicative of a turning economy and the reactions. I personally think that the housing industry misled everyone as long as possible. That plus the idiocy of most analysts meant that only when it was obvious that the sky was falling did these clowns admit it. That creates panic in the system.
posted by Andrew at
6:30 AM
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