The overall U.S. stock market will not change course and move higher until the financial stocks lead the process of bottoming and turning over. Unfortunately this looks far from occurring as numerous banks, brokerages, and mortgage lenders hit new lows today.
Either one of two events should occur in the near future to help the market hit a near term bottom: (1) a major Federal Reserve cut in interest rates or (2) a dramatic panic selloff that purges all weak and fearful holders of stock out of the market.
There is a strong likelihood that both of the events above may occur, creating a market panic bottom.
Unfortunately until all of the bad debt in the financial markets is identified and properly accounted for, a major long-term bottom is not likely.
For long-term holders of stock, this is a good entry point.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment