Friday, January 18, 2008

More punishment for stocks

Dow had another rough week. Today, after gaining 180 out of the gate, it ended down 60 as S&P & NAZ also declined. There has been a lot of bleeding with no indication of when it will stop. With a 3 day break, there is time to sort things out.

The president announced a plan to stimulate the economy which brought the big sell-off today. The more he talked, the more stocks fell. Senator Reid, majority leader, said that if they push thru the bill on a fast track it will "only" take a month. And that assumes it moves on a fast track, something congress is not noted for. First, the presidential plan will be presented next week.

Banks, REITs & junk bond funds slipped again today. Many high yielding stocks are at multi year lows. The Alerian MLP index fell 4 to 389, a new low for the last 6 months. Check out stocks making new lows, there are plenty. While probably not near the bottom, plans can be readied to buy at more favorable times. But earnings reports will continue next week & they don't look to be pretty, more of the same. Try to relax & have a good weekend!

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