Treasury yields (Bonds) dropped to near zero (on the 3 month bills) as investors flocked to safety. In October, Consumer prices plunged by the largest amount in the past 61 years. Oil continued to fall, closing below $50 per barrel, while Gold closed back above $800. Also, three more banks were shut down this week. The saga continues...
(click to enlarge)The Nasdaq is down 50% from its 'high' of 2800 last October. This 2800 'high' was down from the 5100 high in 2000, a double whammy for investors! Another blow to the 'long term, buy & hold strategy' crowd. In 10 years not only did you NOT make any profits, you actually lost money, even before counting annual inflation.
Next week we have a short week because of the Thanksgiving holiday. We got a nice rally on Friday, but we'll have to wait and see if it continues, or if it fizzles like the other big rallies we had on Nov 13th, Oct 28th, and Oct 13th! President-elect Barack Obama is expected to formally announce his economic team this week. The market rallied on Friday after the announcement of his pick for Treasury secretary.
"NEW YORK (CNNMoney.com) -- Wall Streeters returning to work Monday have at least one thing they can be thankful for: Thanksgiving is one less day the market is open."
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Stocks and Indexes mentioned in this blog are for educational and illustration purposes only.
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