Hi All,
Well, by now you’ve probably seen the news. The Dow had one of its worst days in decades. Here is a graph of the bloodletting (below).
Now, after a day like today, its natural to ask whether the market has hit bottom and if it makes sense to think about buying. At this point, all the data indicate that the economy will continue to be pressured at least until 2010.
However, if one compares current events against past recessions it also fair to conclude that current affairs are ugly, but they aren’t the end of the world. The number of bank failures in the 1930s was far greater. In addition, safety nets are much stronger now, also economic science has progressed a great deal since the 1930s. So, this depression is going to be rough, but in perspective its not the biblical end of days some fear mongers would like one to be believe.
Our plan for this year is to continue to purchase stocks. We see it as a tremendous opportunity to build our wealth as the overall wealth of America has depleted. We’ll let you know now things work out.
Best,
James
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