Archive for December 24th, 2008

A year in which many investors have had frigid returns well below zero is not warming up as we approach the finish line in a historical year in the markets, in which volatility was one of the few constants. The long awaited Santa Claus rally in the stock market appears to be in a deep freeze in the North Pole. The markets fell for the fifth straight day today as the onslaught of negative economic data continued.

Investors have been traumatized this year by economic events which have included bail outs for financial institutions and the auto industry, a market crash that saw market caps of many companies drop by half and some as much as 80% or more  and a global recession that shows no immediate signs of recovery. Despite the aforementioned investors should take comfort in the unprecedented actions by the Fed and the support of both Congress and the White House to provide an economic stimulus to this ailing economy.

Unless Santa elects to steer his sleigh to Wall Street on an abbreviated trading day tomorrow, it looks like it is time to turn our focus toward a year end rally in the few days remaining in 2008. Does anyone hear bells?

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