Is This The Second Great Depression?
Yesterday, the Dow Jones Industrial Average ( DJI ) dropped 300 points or 4.25%. The DJIA is now far below the much dreaded 7,000 figure. American’s are questioning whether or not the Obama administration can get us out of this problem this year… or next. Such pessimism now seems warranted. It is painful to remember that the DJI was as high as 9,000 this year, with that seeming low.
The daily average volume has never been consistently this high, but how much of that is selling at a loss? It has been said that money is not handed to us anymore, this much is true. Gone are the days of when one could throw $500 in the market and watch it double within a few months without touching it. Are the days of buying and holding officially over? So it seems, if one actually wants to see a return on their investment.
It would be nice to see a news article present more answers than questions, but this now seems impossible. The banks are failing, much to their own thanks, and much to the thanks of those like Congressman Barney Frank. The market is not Obama’s or even Congress’s biggest concern anymore. Before the market will go back up emphasis will be needed to be put on it.
Jim Rogers recently stated “The U.S. Is in serious trouble. The people in Washington have no clue what is going on. For two years this has been brewing and for two years they have been making mistakes. So, the U.S. Is going to have it’s worse economic time probably since the 1930s.”… scroll down for video.
Are we in a depression? Nobody can tell you that better than your neighbors. There are some people that are still making money in this market, and even having fun with it. Trade in your high cost brokers and perhaps become more active in trading. Some CD’s are giving great rates, and they are always an option for a market like this. Mutual funds ,in some cases, are dropping faster than the market because they grew too fast and became under managed.
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