Thursday, October 9, 2008

How Low Can it Go

The stock market is reeling. The S&P 500 stock index has fallen 42 percent over the last year. The NY Times says that its nearly as bad as one terrible 12-month period from late 1973 to 1974. "Other than that it's the worst decline since 1932." This photo was taken downtown today. Someone painted the bulls balls blue. I believe the paint has since been removed.

It's too late to pull out of the stock market. Yet investors are withdrawing money from mutual funds like crazy. That is enough to set off even more of a melt down.

I am not a financial expert. I still add on my fingers. But I think that until we elect a new president the market will continue to freefall.

A reporter at the WSJ told me that several months ago Rupert Murdoch said he put all his money in bonds - treasuries - and out of stock. Rupert Murdoch can sometimes be a smart man. If only he wasn't a republican....

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