Is the worst of the financial crisis over?
October 20th, 2008
Late selling couldn't put a damper on the best week financial markets had seen since 2003. Varying widely through the week, the stock market was a virtual roller coaster ride of positives and negatives. Up nearly 5 percent last week, the Dow managed to cut into the hefty deficit it had seen the week before, but the big gain seen last week begs the obvious question: is the worst of the crisis over?
Despite the market's biggest one day gain ever, a whopping 936 points, many speculate that the worst is yet to come. Down nearly 38 percent from around this time in October 2007, many speculate the market could lose another 30 percent before it finds its way back on track. So far, the Dow has seen a low of 7,882.51 and while some feel this number was the bottom, others believe it will prove to be just a sampling of how low the market will go in coming weeks and months.
Is there a silver lining? As Warren Buffet, mega-billionaire said last week, "A simple rule dictates my buying: Be fearful when others are greedy and greedy when others are fearful." Buffet believes this is the perfect time to buy stocks, and he might not be alone. The shear number of trades this past week left many believing millions are waiting for the opportune time to strike by buying stock in companies they feel have the best chance to rebound.
Maybe we should just sit tight a bit longer to see what happens in the coming days. This next week will definitely be a good indication on where the market is headed and whether potential investors will continue to wait it out.
Posted By Payday Loan Advocate at Wednesday November 05th, 2008