For the week, Dow Jones pulled back 1%. Commodities did very well, especially gold nearing 900. Junk bonds & MLPs slipped while REITs edged up. Financials, dominated by banks, had another rough week, many at multi year lows. Billion dollar loan write offs have become common, as a result we see more div cuts. Citigroup (C) has a 40% cut priced in the stock. Retail & restaurant stocks have fallen sharply in the last few months, again many at multi years lows. Investing in fallen angels generally pays over the long run.
The start of earnings season will give us plenty of stories next week. These should keep us on a very bumpy road.
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