There was more interesting market action today. The S&P 500 closed at a 12-year low, with other key indices (transports, utilities) also falling sharply. Despite that selling, long bonds couldn’t catch a bid. The futures finished down 31/32 at 124 25/32, a fresh low for this bearish move. Meanwhile, the dollar index is finishing the day around 88.17, slightly below its previous closing high. These are precisely the kinds of market moves I’ve been forecasting in a number of venues.
By the way, did you know there is an index that was recently put together to track the performance of the shares of companies that receive government aid? It’s true. It’s called the Nasdaq OMX Government Relief Index, or QGRI. The starting value as of 1/5/09: 1,000. Its current value: 538.16. That’s a 46.2% decline in less than two months, much worse than the 21% decline in the S&P 500 during that same period. What a great ROI for our taxpayer dollars, eh?
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{ 5 comments… read them below or add one }
Thanks Mike! Keep up the good prognosis! It feels like we are watching the fall of Rome in slow motion.
What is so slow about it! I keep watching 30 year bonds, that will tell you when the end is near for the US government, and with the rest of the world in as much trouble as the USA, who will we borrow from?
Wow, it would be humorous except that it is reality.
Central Planning: where the government thinks they can do a better job with our dollars than we can. (You can tell I’m not a big fan of taxes.)
So Mike,
Where do you suggest one put funds that they cannot to loose or risk?
Hi Mike, always great information. Just one question. Would you recommend purchasing stocks in Citi or BAC at the current prices anticipating a small upside? Thanks.