Investors in stocks and exchange traded funds (ETFs) are probably shouting: "TGIO!" That’s "Thank God It’s Over." It’s been a long week, and today wasn’t much better.
This morning, things kicked off looking hopeful. Madlen Read for the Associated Press reports that while the Dow Jones industrial average was up more than 180 points, by afternoon it had slid back to 128. The index finally ended the week down 4%. The S&P 500 had a tough week, too: it was the biggest one-week loss for the index since July 2002, and it’s currently at 16-month lows. It ended down 5.4% for the week. The Nasdaq closed the week down 3.6%.
The week started out bad, but then it only continued to get worse as economic and housing reports poured in. Fed Chairman Ben Bernanke’s testimony lifted hopes that an economic stimulus package might be what the country needs, but the markets obviously didn’t agree today. And the fact that the Fed is concerned made the outlook more grim.
Once again, we will reiterate our sell strategy. It’s been bumpy and if you haven’t started protecting yourself from yet more losses, it’s time to think about doing so.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.