All the rules are out the window. We’re in new territory now and nobody knows anything. Don’t believe any predictions you hear because they really don’t know. The DJIA Thursday dropped to 7552.29, its lowest in five years. As my stock market savvy friend advised me, at this point you can be sure it won’t drop more than 7552.29. Hah!
There was a time when thresholds meant something. The Dow Jones average sinking below 8,000 must mean the bottom is near. The S&P 500 falling 50 percent from its high must signal the end of the free-fall.
Economists, money managers and traders who watch the markets closely say you can’t assume previous bear market measures mean much. They acknowledge they don’t know where the bottom is and anxiety remains high. So does the selling, which continued Thursday.
I’m curious, OneUtah readers, have you felt the pinch? Are you doing things differently because of the financial disasters we’ve seen? Or do you, like me, still feel somewhat isolated from the real pain — so far. My very smart friend predicts that we will all be feeling the pain before long.
Chart credit: MSNBC