I think Reuters.com posted a good evaluation of stock market performance this past week.
Stocks fell sharply on Friday with the Dow closing below 12,000 for the first time since mid-March as rising oil prices and warnings of more mortgage-related write-downs at banks reignited investor fears of worse to come.
For the week the Dow ended 3.8 percent lower, the S&P fell 3.1 percent and Nasdaq dropped 2 percent. The Dow closed at its second-lowest level this year and below 12,000 for the first time since March 17. The Dow and S&P are both down more than 10 percent so far this year, while the Nasdaq has fallen 9.3 percent in 2008.
Economic Cycle Research Institute’s (ECRI) research director, Anirvan Banerji, spoke with Bloomberg TV this week about the latest jobs data and recession debate, and concludes: “No Ambiguity that U.S. in Recession”.
It seems as though capitulation is on the horizon.
The stock market’s poor performance this week has also put my 100% cash retirement portfolio “back in black” again, after previously returning into the red during the bear market rally since March.
If this downward trend continues as I’ve been forecasting, I’ll be patiently looking to get back into stocks (stock funds) soon. But, as history shows, you just can’t accurately predict short-term movements in the markets, so let’s see what happens.
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