So the Stock Market is closed on Monday in observance of President's Day. It gives us time to reflect on the current situation of our Portfolio and how it is positioned in today's unsteady environment. The bulls and the bears are still at war. The bears have been talking about the subprime mess for over a year now, and they have been right. The financial market meltdown has been overwhelming and the Fed is doing the best they can to keep the market alive by lowering interest rates. President Bush is even giving away money in the form of a tax rebate this year. The sad thing is... last time he gave away money (election rebates) over the next year we saw the worst decline in retail spending! Check out the graph on this
New York Times article. It's hard to say which direction the stock market will head, but we are definitely in for some choppy waters and a likely re-testing of our lows within the coming weeks.
Take a moment to look at your portfolio. Make sure you are not over exposed and that you are appropiately hedged!
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