The heavy downward market moves last week were based on the financial status of American credit institutions. The heavy upward market moves this week are based on massive movements of the world's biggest market players as they move their capitol between gold, oil, metals, and equities in mad rushes to preserve and increase value.
I strongly reccomend that small investors sail directly to port, and take cover in the most secure positions possible. The credit, commodities, and equities markets are going to undergo extreme volitility as huge sums of big player money attempts to protect itself as global economic activity contracts.
The next big move down could happen at any time, when all this big investor money now pouring into equites turns around and moves back into oil and gold. I am sure it will happen, but betting on the moves of big investors in these volitile markets is nothing short of crazy.
If you are unfortunate enough to be stuck in this market, My present hope and best advice is that your wealth is effectively hedged, and all of your eggs are not in one basket. Well picked stocks should be balanced by well picked bonds. US cash holdings should be balanced with Euro holdings, and this cash hedged with metal. If you aren't there now, be very careful with your next few decisions.
This run up may be your last chance to balance your portfolio, if you believe that we are headed down. If you think we will be at this market level, or higher by the end of the year, I think you are crazy.
My long term advice, covering the next 12 to 18 months, would be to become as liquid as possible, and be ready to buy when this slow motion trainwreck finally comes to rest.
But don't expect these bargains to bear fruit for years. If you time this impending deep bottom correctly, you may be able to preserve your wealth, while making your kids rich.
Economic Chaos/Crisis The following articles and much info can be accessed at Committeefordemocracy, economic links
how we got here, how we crawl out of here
What a long, strange trip it's been...
The "Beginning," june 23, '07: Krauts taking a Beating in Morgage Securities Market: Where will it end?
august '07: Markets ready to Kill Economy
august 17, '07: Feds Bailing Out Greedy Speculators
september 5, '07: How much Mortgage Liability do the Banks Have?
november 24, '07: Housing-credit crisis exposing the rotten core of American Markets and Economy
january 14, '08: The impending meltdown
march 14, '08: Death of the new economy, get ready for the big selloff
march 29, '08: economic or ethical crisis?
april 29, '08: Market Perception and Reality are nearing parity
april 6, '08: how we got here, how we crawl out of here
more background: all economic links