We saw the Dow fall over 500 points today only to make up some of the loss
and closed down 416 points (or 3.3%); the biggest one day loss since September
2001. The S&P 500 was down 50 points (3.5%) and the Nasdaq 97 points (4%).
Asian markets had the biggest losses after China fell over 9% yesterday.
This brought concern that the economies are stumbling. There was no other
significant news to instigate the selling today. Yesterday, former Federal
Reserve Chairman Alan Greenspan commented the U.S. may be headed for a recession
and a suicide bomber attacked a U.S. military base in Afghanistan where Vice
President Dick Cheney was visiting.
During the day, iShares MSCI Malaysia (EWW) fell 8% off of its high,
so we sold this position for our managed clients. In times like this, we feel
confident having an investment discipline which includes an exit strategy.
The good news is that Asian markets are now open and appear to be stabilizing.