Dow is down 20% in Oct, not this year, just a few days in Oct!! Markets all over the world are getting mauled with unrelenting selling. Last night Dow futures were down 260 to about 8.3K following the massive sell-off late in the day here. Tokyo opened down 900. Big company names including: Sony, Toshiba, Toyota, Honda, etc. were hammered. An insurance company failed (following other insurance failures) & the REIT index had it's worst day in history after an REIT failure. The Hong Kong market was down over 1K. Just a few weeks ago the index went below 21K, today it's in the 14Ks. Shanghai peaked a year ago at 6K+ (OK, it was overbought). Today it's under 2K. The Australia index fell a little below 5K a few weeks ago. Now it's 4K, the last week was the worst in 20 years. By the way, Australia is not as badly affected by worldwide trade. Speakings of declines, yesterday was the one year anniversary of Dow reaching a peak at 14.1K. After 365 days, it's fallen almost 6K. Even with the ugly reputation Oct has, this already must be the worst month in history. The S&P 500 is expected to have it's worst week since 1933 (shown below):
S&P 500 - last 5 days
I like MLPs & had buy points last week on targeted companies. Fortunately I never bought because they're about 10-15 points lower IN JUST ONE WEEK!
Following up on sinking Asian markets, Singapore & New Zealand officially recognized recessions in their economies. Be prepared for more announcements
Today Dow is down 300+, etc., etc., etc.
Central banks are injecting massive amounts of liquidity. Instead of helping, that's seen as bankers not knowing what they are doing. Hedge funds are selling a lot of stocks when investors redeem so they can buy buy gold & T-bills. This is really getting ugly.
Oil is down to 81, sounds good but selling signals expectations of much lower demand around the world . Gold is having a good day as many investors seek the flight to quality. Below is chart of 2 years for Oil showing how far it's come & gone:
| CLX08.NYM | ....Crude Oil Nov 08 | ....80.90 | ... 5.69 (6.6%) |
Oil - 2 years
I wanted to get this out quickly, I'll return shortly with more thoughts. Try to think long term thoughts. I know it's hard, but keep trying!
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