Did anyone get the license number of the truck that just ran over the stock markets?

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity…” These words, penned in 1859 by Charles Dickens, could well describe the technical picture of our current market.

Without the help of any particularly bad news announcements, the stock market fell hard today, August 4th, with Dow Jones Industrial Average down nearly 513 points.

We moved our bond money back into markets during the first of the week just before the debt problem was fixed. Yes, Washington just kicked the can down the road and did not fix the problem, but they did enough that the markets should have been happy for now. However, look what is happening?

I have checked the Yield curve, oil prices and transportationals and only the transportationals show any signs of a problem.

I am not sure what is causing the current problem, except Washington’s dragging out the debt crisis and other problems like the air traffic control problem. Washington may have spooked the world by their ineptitude and lack of understanding of what goes on in the real world. Congress and the Senate went on vacation while the U.S. Markets (Roman) burns.

Every year the stock markets have a 10% or 15% correction. We had a 10% correction caused by the Japanese Tsunami. I had hope that would be the only one this year. However we are down 10% this week, during a period of time that we should be going up? It feels like October 1987?

Stay tuned for tomorrow!

God bless!

About the author

Ted Feight, CFP®

I have been an asset, financial, life and wealth manager for 36 years. During that time the profession has been in a state of rapid evolution. What my core clients expect of me today is very different from what they expected 36 years ago When I started, clients were just beginning to invest and had little. Now many are near and or are retired, and have accumulated a great deal.
I believe I have given my clients peace of mind and comfort that occurs when they have had a trusted relationship with someone for many years. What keeps my clients coming back to us is not product, but the confidence that someone is looking out for their best interest, listening to what they are saying and serving as a partner in helping them get where they want to be. Who else has asked the questions about who they are, where do they want to go, and what drives them? I have been my clients' sounding board, confidant, coach, guru and in the end the stronger the relationship we have had, the greater were their successes. We do not always have the "Be your client's best friend" type of relationship but, in the end, I want to be their "go to" guy when they need questions answered or need help.

One Comment

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  • S&P has downgraded US debt, this has created panic in the markets, but the question is should we take S&P seriously when these credit rating agencies have proved that their understanding about economies is indeed poor.

    Remember, it is the same S&P that gave AAA rating to mortgage backed securities in 2005-2007 and we all know what happened after that, so I guess its time to be bullish when S&P, Goldman and the likes become bearish on the world.

    Please visit http://www.kalpeshmaniar.com for accurate forecasting

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