The market isn't responding to the liquidity added to the economy yet. The feds agreed to buy commercial paper issued directly from companies and in a few weeks the bailout package will start to hit.
In the meantime, yesterday I watched the market go from down 200 to up 150 to down 250 to up again and finally closing down nearly 200.
The actions of the government are not making anyone more confident in America or its money.
The Dow is down 37% from the highs it set last fall and people are in a panic. It seems like the market has no chance and things are moving down so fast it is hard to find something to short.
You can basically short anything right now so fundamental research isn’t playing any part in anything.
Today, Thursday, we were down another 678 and I have no idea what to think.
Mutual funds which are supposed to be the safe havens of the market are down huge amounts over the past year. Fidelity Magellan is down 44%, I doubt people ever thought that could happen. I certainly didn’t. Peoples lives are changing and mostly for the worst.
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