Tuesday, March 11, 2008

Market Up - Will It Last?

The Dow had an up 400 day, mostly on the news that the Fed was going to inject $200 billion of liquidity into the market.   This gave hope to many investors that the worse might be behind us and that it was time to get back into the market.

I kept my money on the sidelines.  I'm not sure how this Fed action at all solves the fundamental problems that caused the market to tank in the last few months.  We are heading into a period where we need to pay for the excesses of the last few years.  We can delay it, and that is what the Fed seems to be trying to accomplish, but in the end, someone is going to have to pay up.

The market reacted to relatively weak news, and this stimulated others to jump in not to miss the boat.  But when the smoke clears people are going to realize that the fundamentals just aren't there.

Take this opportunity to get rid of any stocks that you have been wanting to get rid of for a while.  Days like this don't come by too often and you have to take advantage of them when you can.


  1. It's going to continue to be a roller coaster ride. For those with weak hearts, I'd hold off on buying a large number of stocks at this time.

  2. The U.S. economy is taking such a beating that the price of gold went up again. Soon it will reach $1000.

  3. already did reach 1000. Still think it might go up from here. If the fed keeps cutting rates, like it just did today, it's going to weaken the dollar and put inflation pressure. Gold is the best inflation hedge, so it's going to continue to go up.