Something fishy with the Dow
November 7, 2007
As I write this, the Dow Jones Index is off by 300 points!! That would be over a 2 percent loss for the day for those that are keeping score.
Something is just not right with all this volatility — while great for daytraders or swing traders like myself – this can be utterly frightening and become very worrisome for the longterm buy-and-hold investor.
Things are truly tightening, credit, expansion, everything.
Washington Mutual and AIG are both looking to reduce their portfolios via writeoffs and crude oil still at $96.00 per barrel. Oh, and did I fail to mention the GM recorded its worse loss ever?
Did someone say recession? Cash is and always will be king. Continue to invest selectively and with a visionary approach toward the economy. It could get MUCH worse before it gets better….Another example will be when other countries start to seriously consider getting away from U.S. dollar-related securites? (Think banks, mortgage companies, insurance.)
Just keep a Close EYE on your portfolios and don’t be afraid to move to the sidelines if this keeps up.
On my next article I will discuss how to be a smart saver in these tough times.
Peace,
Oscar
