The Dow Jones Industrial Average, which tracks the country's 30 biggest companies fares the worst performance in their historic selloff. Usually in the month of September and October every year Dow Jones Industrial Average always perform badly, either moving side way or tumble across the board. But this time the DJIA Bear's is much bigger than the previous one.
If we take a look on the chart - The Dow's biggest losses: In September 2008 and October 2008 it recorded six times sharp falls if we want to compare their historic data.
This can be considering the worst performance so far if we want to compare during the dot-com bubble burst in 2001.
Latest Development : Buffett says he's buying U.S. stocks.
Billionaire investor Warren Buffett is buying U.S. stocks, he wrote in an opinion column in the New York Times. "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful," Buffett wrote in the paper.
Buffett acknowledged the economic news was bad, with the financial world in a mess, unemployment rising and business activity faltering. "What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up," he said. "So if you wait for the robins, spring will be over."Buffett, who made his money by building his company Berkshire Hathaway Inc into a $199 billion conglomerate, wrote that investors were right to be wary of highly leveraged entities or businesses in weak competitive positions.
"But fears regarding the long-term prosperity of the nation's many sound companies make no sense," he said. Buffett said major companies would suffer earnings hiccups, but added they "will be setting new profit records five, 10 and 20 years from now."
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Whether this statement issue by Warren Buffect wil help the DJIA to stablize, the damages have already been done. Everything will depend whether the U.S financial bailout plan will help to ease some tension in the Wall Streets.
1 comment:
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Recently an insurance company nearly wind up....
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A bank is nearly bankrupt......filing chapter 11 protection.
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How it affect you? Did you buy insurance? Did you buy mini note or bonds?
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Who fault?
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They bailout trouble finance company, but they will not bail out your credit card bills…….Should they have use the bail out $$ to pump into all different industries instead ……You got no choice, and no point pointing finger but you can prevent similar things from happen again……
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Are you a partisan?
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Since the bailout already done, the question now is besides letting the economic back on track, what regulation should be done to prevent similar things from happen again…..
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The top management of the Public listed company ( belong to "public" ) monthly salary should be tied a portion of it to the shares price ( IPO or ave 5 years ).... so when the shares price drop, it don't just penalise the investors, but those who don't take well care of the company.....If this rule is pass on, without any need of further regulation, all industries ( as long as it is public listed ) will be self regulated......because the top management will be concern about their own pay check…… Instead of spending big money on hotel stay and luxury function……..Top management get monthly salary and director fee, while investor get dividends….
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Whenever anywhere, anytime, there is election campaign.....We can use this to question your candidate there….. if you agree on my point, please share with many people as possible.... Finance and Media are the two only industries can shaken politics ( Maybe Hackers can ), please help to highlight also...
Also recently some comments say that Respectable Mr Buffet had start buying, yes, he started buying with guarantee return of 10% annually….. Do we individual investor had the same offer…. If yes, I will definitely join in and buy……
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http://remindmyselfinstock.blogspot.com/
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Facebook, come and join as a friend and share with your friends…..
Remind.myself@yahoo.com
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Just image, Institution lent out the shares already, in their hand, they don't have any stock or shares already, but Institution know that in the market, there are those individual investor who borrow the share going to sell the stock, so Institution naked short also, because there is no restriction on those Institution that those stock or shares that lend out, cannot be trade by the institution at that moment.
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