There were dozens of reasons on October 2002, too. The strength of US and Brazil economies hinge on a very simple production, income, and consumption cycle. The cycle has not been interupted at all.
No sector leadership, threat to treasuries (http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20081019/REG/310209975/1009/TOC&ht), earnings getting decimated, credit bursting, etc etc etc. We're in for a world of hurt going forward. To what extent nobody knows. Forget generalizations. Look at data. There are MAJOR problems right now make no mistake. Anyone can SAY this or that. You have to form educated opinions.
we still have'nt retested previous lows. i.e. dow 7880....s/p 839. we go there and vix may go higher...maybe by mon or tues.
Today was a very bad day. Capitulation did not happen. Monday is going to be one hell of a bloody day based on Fear Factor....OBAMA heading into Nov 4th, week and half away. IMHO, INDU will touch 7500 if not lower. Question is, do we get there in two day's or over 4 months? Economy is getting crushed in certain sectors, then again, other sectors are doing ok...for now. VIX is indicating a massive move one way or the other. Retail traders are being wipped out day by day. Institutional Traders being let go each day, hedgefunds unwinding positions in every rally, and the consumer is scared to death. Still, we have some good news coming in from time to time. However, nothing matters but who wins the Election. OBAMA= Depression/market crash. McCain= Recession and market crash. America will vote their future on Nov 4th. Until then, VIX 70 all day long.
Wrong. The market doesn't give a rat's ass about the election. It's about the ECONOMY and the credit markets. ie.) AXP corporate 90-day paper is yielding 2.9% while long-term AXP paper is priced at 18%. Capiche?