November 26, 2008

The Bottom?

This is a chart of the Dow from 1982 to the present. It's a bit hard to read, but the important take away is that the Dow bounced right on the 50% retracement of the super-bull (the bull market that started in 1982.) The Fed has shown that it is willing to print as much money as it takes to keep the economy afloat. I guess this is good. It's possible that the government (the taxpayers) will end up making a ton of money in the long run for all the investments being made.

In the meantime, the Dow and the S&P are back in the October trading range. As for today and Friday, I don't put much weight on what happens during these two days (unless there is some big news.)

I hope everyone has a nice Thanksgiving. And, if you're not celebrating Thanksgiving then enjoy the day-off from the US markets.