Bad Market!!

[HL]

The DOW has been taking a major licking for months.................!

I guess the Jamaican term 'bad market' is very appropriate.

[Islandman]

I expect it to be going nowhere for a while.

[Me]

There is no volume in the market right now because employees all across America have been putting their 401k allocations in bond funds. These wild swings will continue for every bit of news that comes out as the short term traders dominate the market.

[Islandman]

Those bond funds going to blow up pon nuff a dem.

Maybe this whole 401k thing is vastly overrated. Most people have no idea what them doing.

[Me]

That might happen. When Bill Gross, the bond king, decides to start an equity shop you know something is not great long term in the bond market.
If their is a mad rush to exit the funds after an increase in interest rates, investors will be hit hard.

Right now money market funds are closing left right and center because interest rates are so low that by time they charge fees, the return on the funds are zero or negative. Some funds are charging little to nothing just to make sure they keep their clients.

[HL]

The sad (maybe unfortunate thing) is that one does not know if they should hold or if they should fold.

What i know is that it's a buyers market for those who have the gonads to do so.

Take AIG for example...still an excellent buy!