Paul at Infectious Greed sums things up rather well:
936 points on the Dow. 11.1%. Oh. My. Goodness. Almost unbelievable. I'll leave to others to put it in context in terms of biggest-first-day-after-apocalypse-rebounds-on-prime-numbered-weekdays-in-October, but I'll just say this: the G7 put sure beats the crap out of the Greenspan put.
Somewhat more seriously, has it changed anything for me? Not really. Governments around the world have said that they will prop up financial markets, not letting major institutions fail. And that's mostly good, if not entirely unexpected, and if replete with unintended consequences galore.
To put this into some sort of context. After the 936 point spike, we are still at a closing level seen ALL THE WAY BACK TO...... midday last Thursday.
I love your site. But, I wonder, what is your move with everything that is happening?
ReplyDeleteMoving up the capital structure (in many cases debt is a value vs. equity), buying stock in great companies that are amazingly cheap, looking at market anomalies (i.e. my post on close-end muni funds) and keeping a portion of cash on the sidelines as assets continue to deflate.
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