The markets continued to flounder yesterday. Microsoft surprised investors by reporting their numbers early and with disappointing results. We also had housing prices declining 1.8% last month with slowing new building activity. The economy is weak here and abroad and the market doesn't see any upturn in the near future.
Until the economy has prospects of bottoming, investors will stay on the sidelines. GE reported this morning and they too had weak earnings but not worse than expected. Google reported after the close yesterday and joined Apple with very strong earnings. There are so few companies doing well these days that the markets just keep trending lower.
It is important to stay liquid and buy quality as this ride will remain bumpy. We have said for a long time that this recession will be longer and deeper than most expect and unfortunately, it looks like the markets are starting to believe it too.
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