Steepest drop since Feb. 2009: Here we go again!
Today's Financial News - Posted January 22, 2010
The Dow’s experienced the steepest drop since Feb. 2009. What lies ahead?
by J. Christoph Amberger
Baltimore, MD: The weeks started on such a promising note I was fantasizing about a Dow 11,000, giddy at the prospects that Brown would do for you what he did for re-establishing a semblance of balance of power in the United States Capitol.
U.S. stocks fell off a cliff on Friday, finishing a week of heavy losses that erased all gains for 2010. The Dow Jones Industrial Average (DJIA) closed down 4.1% for the week… the S&P was down 3.9%. The Nasdaq was down just 3.6%.
These are big numbers. Reminding uns of the post-Inauguration Meltdown of 2009!
Again, it’s earnings and “uncertainty”. But this time around, it’s especially the ham-fisted handling of the financial industry through the Obama Administration.
A global Bloomberg poll of investors and analysts (who are Bloomberg subscribers — and accordingly appear to have skin in the game of the markets) shows that a whopping 77% of U.S. respondents believe Obama is anti-business. 80% believe only somewhat confident or not confident of his ability to handle a financial emergency.
That sounds like a pretty darn good reason for “uncertainty”!
Meanwhile, Obama keeps blaming the “mess he inherited” — reminiscent of the man complaining of the smell of his neighbor’s dog’s droppings that he painstakingly hid under a truckload of fresh manure…
And again, this meltdown is affecting most asset classes. If you were thinking you were safe holding gold, look at the chart below.
The coming two weeks will be crucial. Again the “January Effect” has been truncated by politics. Tread with caution, hedge to the downside… and use what could be a protracted sell-off to below 9,000 for target buys at depressed prices.
I don’t pretend to know what’s ahead. But I distrust Obama and I distrust the market. Still, last year, my team and I managed to create almost 80 double-digit gainers for members of TFN’s subscription-only service, Hot Stock Confidential.
These days, I try to apply my 20-plus-year experience in the markets to my own blog. Check it out if you will!
Next Article: The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
Posted by J. Christoph Amberger · Filed Under Featuring..., US Stocks and Markets
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January 23rd, 2010 at 4:30 pm
Nothing has changed in government spending policy. If the gov and fed do not stop making blank checks to their friends, the economy of the dollar is over. I recommend you move to Costa Rica.
January 25th, 2010 at 12:13 am
It is not as easy to invest and win as it used to be. Geothermal energy appears to be one of a few sound investments.