Calling a Bottom
I cannot say that this is a fearless forecast, but I'm calling a bottom. At around 10:40 EDT today the DJIA hit 9,738.30. Call me foolish, I think this is a bottom, cast in panic. It is panic that makes market bottoms, and we have had plenty of it. Although things seem absolutely terrible right now, what with major European banks pitching into the mud, following their American brethren, the elements for recovery have already been set in place. I for one (call me foolish) believe that the financial rescue plan will work. I think it is an intelligent, sensible means to address the meltdown we have been seeing. I think that Paulson will get it working fast, and it will do a world of good for the credit markets. And other than the problems in the credit markets and the housing market, not too much is wrong with us. I think we saw the bottom today.