I have to agree with TCash on this one. The market is unlikely to just bounce back and head higher from here on out. There is still a pretty good chance we haven't seen the bottom yet. The market hates uncertainty and there is plenty of uncertainty to go around right now. There will be plenty more news coming from the stock market in the coming weeks that will impact the election in a major way, that much you can count on.
The financial markets have not truly recovered. We may be able to see how they are going to recover, erasing some of the fears of early in the week.
But the markets weren't just stock prices going up and down, that's just the visible reaction to the credit crisis and failure of some financial companies. The markets are reacting to news that not only impacts the prices of those stocks but they looked ahead to the macroeconomic impact over the next six or so months. The pain is far from over. Big layoffs begin next week.
If indeed last week held a long or intermediate bottom, it's likely we'll retest that bottom. Bottoms are often a "W" not just a "V." There's still tons of uncertainty out there to cause uncertainty in the market, including, even moreso now, the Nov 4 electon itself.
There's also the decent possibility we haven't even seen the bottom. After 9/11, stocks mostly dropped for the year following, the bottom being in
I'm sure many are aware of all this; I've just seen repeated comments about the "recovery" in the stock markets on Thurs and Fri, and it seemed people felt it would only get better from here. I'm not your typical "gloom and doom" on the economy Democrat. But recent events are a once-in-a generation economic crisis. This could seriously get worse before it gets better.
