Dow Jones (DJIA) has 2nd worst fall this year - down 449 points and second only to mondays over 500 point drop!
Wall street is getting frantic. Banks and large wall street investment firms are trying to figure out who is next to fall in this most recent economic downturn. Apparently, it doesn't matter what sectors or stocks you currently own. They are all going down as the valuations and such out there are all getting repriced. Just look at the wealthiest people in the world. Many of these people have lost fortunes lately due to the economic distress going on.
It's a blood bath out there! Bill Gates is the luckiest one as he only lost 2 billion in his investments lately. Warren Buffett lost a lot more. Some like the ex CEO of AIG, Hank Greenberg, have lost over 90% of their value. Greenberg was stated as having a networth of over $20 billion at the beginning of 2007 and now has a net worth of only $800 million! He lost $19.2 billion dollars and could lose more as the fed further dilutes shares of AIG due to the terms of their $85 billion dollar aid package for AIG. Greenberg is definitely signing the wall street blues right now!
Discover® Business Card – 5% back on your office supplies! Apply Now!
The best advice is to stay out and watch from the sidelines. Go into more secure investments like bonds, treasuries and money market accounts (make sure they are insured with the FDIC). It is very important for Americans to review their current banking and savings plans and structures. Make sure you are protecting your assets and are in FDIC insured banks accounts and money market accounts. Many banks that are here right now could be gone tomorrow or shortly as the entire financial industry is going through upheavels not seen since the great railroad bankruptcies of the 1800's or even the great depression.
Apply for the Discover® Open Road Card today! link goes direct to application
It is however, according to some insiders and analysts a bargain fest out there if you can invest in a long position and don't have to worry about your money for years. Most stocks are at savings of 50% or more in various niches from technology (Apple, RIMM, etc...) to just about anything you can think of. Financials are at 90% or more savings, but that is one crazy, super risky area that should only be left to someone with a high aversion to risk, an iron gut and money they don't care if they lose it tomorrow.
As I stated previously, it is likely the market could easily go as low as 10,000 for the Dow fairly quickly and then bounce back up. There are great support levels at around 10,000 and that may be the bottom of the market. Don't expect this market to reverse itself much anytime soon as there are a lot of banks and related financial companies that are still left teetering on the brink of disaster and there is only so much the fed can do.
This is not financial advice. For proper financial advice please see a licensed financial advisor.
It's a blood bath out there! Bill Gates is the luckiest one as he only lost 2 billion in his investments lately. Warren Buffett lost a lot more. Some like the ex CEO of AIG, Hank Greenberg, have lost over 90% of their value. Greenberg was stated as having a networth of over $20 billion at the beginning of 2007 and now has a net worth of only $800 million! He lost $19.2 billion dollars and could lose more as the fed further dilutes shares of AIG due to the terms of their $85 billion dollar aid package for AIG. Greenberg is definitely signing the wall street blues right now!
Discover® Business Card – 5% back on your office supplies! Apply Now!
The best advice is to stay out and watch from the sidelines. Go into more secure investments like bonds, treasuries and money market accounts (make sure they are insured with the FDIC). It is very important for Americans to review their current banking and savings plans and structures. Make sure you are protecting your assets and are in FDIC insured banks accounts and money market accounts. Many banks that are here right now could be gone tomorrow or shortly as the entire financial industry is going through upheavels not seen since the great railroad bankruptcies of the 1800's or even the great depression.
Apply for the Discover® Open Road Card today! link goes direct to application
It is however, according to some insiders and analysts a bargain fest out there if you can invest in a long position and don't have to worry about your money for years. Most stocks are at savings of 50% or more in various niches from technology (Apple, RIMM, etc...) to just about anything you can think of. Financials are at 90% or more savings, but that is one crazy, super risky area that should only be left to someone with a high aversion to risk, an iron gut and money they don't care if they lose it tomorrow.
As I stated previously, it is likely the market could easily go as low as 10,000 for the Dow fairly quickly and then bounce back up. There are great support levels at around 10,000 and that may be the bottom of the market. Don't expect this market to reverse itself much anytime soon as there are a lot of banks and related financial companies that are still left teetering on the brink of disaster and there is only so much the fed can do.
This is not financial advice. For proper financial advice please see a licensed financial advisor.
Comments