Friday, October 10, 2008

The Dow's Worst Week Ever

In a week knowing no precedent, The Dow Jones Industrial Average dipped below 8,000 today before rallying from a 697-point intra-day sell-off, finishing at 8,462.18.

The Dow has not seen levels this low since March 17, 2003. Massive selling pressured markets around the globe, forcing the Dow down 2,271 points across the last seven sessions. That equates to a 20 percent drop. The Japanese Nikkei fell 9.6 percent and the London FTSE tumbled to 8.9 percent.

This pressure cannot sustain its downward momentum. I believe a sustained rally is in our future, perhaps as early as next Monday. Lace up your track shoes, and bring some cash. Stocks are bargain investments right now. Buying simply makes sense in the wake of this week's financial carnage.