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Saturday, November 29, 2008

Is it over yet?

The month of October and November are the months people like to forget.  In October alone Dow was down 15%, Nasdaq down 16% while S&P 500 also lost 17%.  Things became must worse in November as both Dow and S&P 500 on November 20 broke 10 year low on lack of positive catelyst.  For Dow it was a 40% plus drop for the year.  For Nasdaq - minus 50%.  For individual investor like me it was even worse as my portfolios on November 20 weer down 60% for the year.  

However all the sudden the stock markets came alive again after presedent-to-be Obama annouced his financial dream team.  Having been lacking any positive news, the market reacted with 11% surged in Dow in two trading session.  

So is the worst over yet?  What's next to come?  As the Obama Dream Team heat gradually cools down, the next thing to focus would be the Detroit Bailout of the Three Big Autos - GM, Ford and Chrysler which will take center stage again next week after the failed attemp in the congress last week.  So will the bounce back rally continue?  Watch carefully how the government will do with the auto industry.