We promised more volatility and we got it. The markets were down over 2% yesterday afternoon until a news report about the Obama plan to help homeowners keep their homes through a mortgage subsidy program. Details are not out yet but it appeared to be good news so the market rallied to end up 1%. It only seems fair that some negative news should come out this morning to send it down again.
The next few months will keep the market on a yo-yo string until there is some clarity to the Obama/Geithner plan. The economy is sinking and the economic outlook is bleak. The markets are going through a bottoming process but it is likely to be lower before it goes much higher. Until there is some sense that unemployment is slowing, the financial crisis is improving, and housing is at a trough, investors will keep most of their cash on the sidelines.
Better times are ahead but the consumer is weak and companies are bleeding right now. More pain is inevitable but eventually there will be light at the end of the tunnel. It just won't happen until 2010.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment