Monday, October 06, 2008

Another Big Monday

Here we go again. It's Monday morning, and we're waking up to huge stock market losses in Europe, Asia, and U.S. stock futures.

I don't wish investment losses on anyone. It reduces wealth, delays retirement, and generally disrupts life. However, these stock market losses are going to happen eventually - it's simply a question of who cashes out first and when. The sooner and steeper the plunge, the sooner stocks become good investments again, and the sooner the bear market comes to an end.

Remember that there are at least two bubbles being burst simultaneously in this bear market: the mortgage/financial bubble, and the buyback bubble. That's a lot of hot air to get rid of.

1 comment:

Jody said...

I appreciate and share some of the strong feelings being expressed by readers this morning, but I'm going to do my best to keep this blog above the fray. The goal here, as always, is to anticipate trends in the stock market. Blame, revenge, and schadenfreude are best left to other venues.