Thursday, August 7, 2008

Monster Decline

Stocks never had a chance today. Dow was down 224, decliners over advancers 3-1 & NAZ dropped "only" 22. NYSE volume continues low at 1.3B. Low volume indicates bleeding will continue. A dreary unemployment report combined with a weak, at best, outlook for retail sales sunk stocks.





American International Group (AIG), a Dow stock having its worst day in 26 years (plunging 5¼) led the way down. Citigroup (C), another Dow stock, will have to return $B to investors after paying $100MM in fines, down 1.23, aggravated the negative feeling on Wall Street. The picture of AIG stocks shows they're at the lowest level since 1993:


American International Group




Financials sold off big (courtesy of Bloomberg TV):

S&P 500 FINANCIALS INDEX

Value .. 284.03 .... Change (15.01) .... % Change (5.0%)

The Alerian MLP index dropped only 2 to 259½, straddling it's new 52 week low from a couple of days ago. By comparison that's good. REITs sold off in sympathy with financials as gloom, & doom carried the day. Tomorrow Fannie Mae (FNM) reports what should be another ugly picture of big losses.

In times like these, the idea is keep your cool. Look for good values. I like oversold stocks with high yields which will make the waiting period go better until there is a meaningful recovery.

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