Wild Week

In a Bear Market “Nobody get out alive.”

So if you have followed my advice since March you are in cash and have a nice big watermelon smile on your face. If not, and you are still in the market then you are either looking for a second job to make up for the losses and/or are on welfare (my condolences).

The markets pretty much had their worst week in history, as the chart of the Dow below indicates. Markets are now where they were 10 years ago. So that means if you are a buy and hold investor you officially have made 0% on your money and are in the red if you count in inflation.

The good news is there is a gift horse buying opportunity coming in the next couple weeks. Follow my picks and you will be making triple digit gains (that’s over 100% for those of you who attended public schools). How can you make 100% in the stock market? Buying leverage and on margin – only recommended after the market is at 10 year lows, as it is now. Follow my advice and you will soon be taking up new hobbies like yachting, squash, and aggressive spending. You may even have enough cash to replace your above ground pool with a real one or buy your hideous teenage daughter those braces she needs so she can finally get a date to the prom. As soon as this market is ripe for the picking I’ll post those picks and then you can watch those profits flow.

Market Down 10% This Week

That would be a big number for a year’s worth of losses, but it’s gigantic for one week. The market got its wish with the $700 billion dollar government rescue package but that was not even enough to stop the endless selling pressure.

The real kicker in this market is housing prices which continue to fall on a monthly basis. In addition to lower home prices the unemployment rates are rising along with credit card and mortgage delinquencies. I think both will continue to get worse and companies start laying off large numbers of employees to help reduce overhead cost.

The market will continue to stay weak and we still have not seen the ultimate lows in 2008. The good news is I expect we will put in the low for the year in the next 2-6 weeks and that will be followed by a powerful rally heading into 2009.