On Friday, Mike Feser, the President of Zecco Trading, was all miked up and ready to appear live on Fox Business when his spot was suddenly pulled because of major breaking news. President Bush signed into law the $700 billion bailout package Congress had passed earlier that day. An historic moment that obviously trumped Mike’s very interesting topic.
I, for one, was very relieved when the bailout was passed (although I would have loved to have seen Mike on TV). In my opinion, the time for a principle stand against the irresponsible acts on Wall Street had passed. As Mr. Buffet said a few times over the past few weeks, we are facing “an economic pearl harbor” the likes of which none of us have ever seen. The very survival of our financial system – and consequently the American economy – was at risk. It wasn’t the time to cut off our nose to spite our face, so to speak. Unfortunately, this seemed to be the only way out of this crisis. Action by the feds was needed.
In a stunning turn of events, we woke up Monday to news of massive turmoil in European banks and an even more ravaged stock market both here and abroad. The Dow was down almost 800 points at its worst, but thankfully rebounded and closed at almost 10,000.
I believe part of the catalyst for the dip was the fact that both our bailout and European governments’ attempts to bailout their banks was too slow and failed to convince investors. People still don’t have confidence in the financial markets.
The irony in all of this, is that here at Zecco, we are seeing record growth. That’s in fact why Fox Business was interested in speaking to Mike Feser. Trading volumes are through the roof. New accounts are at an all time high. Of course this piqued our curiosity and Gabriel Dalporto, our Chief Marketing and Strategy Officer, sent out a survey asking, “Why?” An overwhelming 68% of respondents said they saw the economic crisis as an opportunity to jump into the market and buy.
I must say that I’m fascinated by the optimism shown by the survey in the face of such carnage on the street. Do you see the economic crisis as a time to buy or are you feeling nervous with all the wild volatility? Are there any “safe” sectors or companies to invest in right now? When do you think the markets are going to recover?
The above content is provided for educational and informational purposes only, does not constitute a recommendation to enter in any securities transactions or to engage in any of the investment strategies presented in such content, and does not represent the opinions of Zecco or its employees.