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The Heart of Darkness

February 18, 2009


Good morning. The hits just keep on coming. Last week the market (SPY) was down $4.22, or 4.9%, and yesterday it followed up with another drop of $3.54, or 4.2%. That brings the unhappy totals for the year to down 12.2%, and it is only mid-February. Yesterday’s “official” reason for the sell-off was the continuing stream of bad economic numbers from Asia and Europe. Remember how we were forced to listen to some of the so-called “experts” within the last couple of years ago telling us how Asia was so strong that even if we went into a recession it would not matter to them? How is that theory working? And why were those morons on my TV set?

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Trillions

February 2, 2009


Good morning. Another week, another sell-off in the S&P. The good news is that the week was only down a little, about .3%, the bad news is that there was a 3.4% up day erased. The up day was caused by the announcement that the Obama administration was going to announce a so-called bad bank to take bad assets from struggling commercial banks, the subsequent sell-off was caused by glitches in that plan as well as increasing issues with the new stimulus package.

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The Money Pit

January 12, 2009


Good morning. The first full week of the New Year felt like a slower version of some of the weeks of the old year. The SPY fell from $92.96 to $89.09 (4.2%) and the VIX advanced from 39.18 to 42.81, as the ongoing fears of unemployment and access to credit continue to weigh on the market. We had a nice upside earnings surprise in Monsanto (MON), up almost 20% in one day, but most earnings announcements are bringing a steady stream of bad forecasts going forward, cuts in planned capital spending, and either hiring freezes or layoffs of some kind.

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