Finally, I just could not take it anymore, I had to buy some US Equities. Of course I already own some equities, but other then hanging on with the managers I have liked, I have not bought a thing in this entire down trade and I finally just had to do it. I am not saying this is a bottom, but with equites down almost 50% from the highs I just had to do it. Perhaps it is my way of saying I have faith that the world will be ok. There is so much dislocation and craziness in terms of what has changed in our economic world over the past few months I do not even know where to begin.
Here are just a couple highlights in terms of the impact: ( as of last nights close)
– S & P down 38% on the year
– World equities down 40%
– European equities down 39%
– Chinese equities down 62%
– Industrial Stocks ( XLI) down almost 50% from it’s high on Oct 1 2007
– Oil ( USO) down over 40% from July 7 2008 high
– Credit Markets still an absolute mess but with glimmers of hope
Despite the markets being down a lot a bear market typically does not end until the news starts getting better and not worse. There is no doubt that corporate earnings are on their way down, and the question really is how bad will it be and at this point what is priced in to the market. Bear markets can have some wicked bounces and this market is so oversold then it might just be time. Some very smart equity managers I know are telling me there are some buys of a lifetime out there and I believe them, but as a person who does not buy and sell stocks for a living, it still feels really scary out there.
I am taking the weekend off from writing on the BLOG and from obsessing about the markets. Since I am Canadian I can say both Happy Thanksgiving and Happy Columbus Day.