Early this morning Dow was down 122 in pre-trading. Uh-oh again! It followed thru in regular trading, now down about 200 & flirting with 13K. For the last few months it has been stuck between 13 & 14K , this time it will test to see if it can break thru on the down side.
This morning Merck announced that they will set aside almost $5 billion for Vioxx law suites. That's considered "good" because it allows them to get on with the business & forget the past. OK! Bigger news was that Wachovia took another $1B hit on it's loans in October (note that's just October). The market is getting tired of more ugly stories from the banks. But they will continue for awhile. Chances are most will take a "big bath" in this quarter to "clean" the books making it easier to start the new year fresh. I don't mean to be knocking banks because I like them & their yields. However more tough stories will be coming in coming weeks.
REIT's are down with the rest of the market. There is fear of adverse effects from a slowing economy, but I like the fact they have hard assets (properties) and better ones have excellent track records of paying increasing dividends. Many have high yields, going higher.
The financial news can be depressing in these times and probably will continue for at least a few months. This is the time to study and prepare for buying opportunities, for very smart investing.