Bloomberg has the results of today's failed bailout measure.
The Dow Jones Industrial Average slid 778 points for its biggest point drop ever as $1.1 trillion in market value was erased from American equities. The MSCI World Index of 23 developed markets slid 6.9 percent, the most in 22 years...
``We've completely decimated confidence in the markets,'' said James Dunigan, managing executive of investments at PNC Wealth Management, which oversees $66 billion in Philadelphia. ``I appreciate their wanting to be a watchdog, on the other hand, if the kitchen's on fire, you don't want it to spread to rest of the house.''
The S&P 500 decreased 106.43 points, or 8.8 percent, to 1,106.58. The Dow slid 777.68 points, or 7 percent, to 10,365.45. The Nasdaq Composite Index declined 199.61, or 9.1 percent, to 1,983.73. Twenty-five stocks fell for each that rose on the New York Stock Exchange.
While the drop is $400 billion more than the proposed bailout, note that it is only a paper loss. If you haven't sold, you haven't lost a penny, and indeed tomorrow looks like one of the better days to buy since 9/12/2001. And if it drops again tomorrow, that makes the next day an even better spot, etc. The American economy retains favorable its conditions in nearly every sector outside banking, and even the banking sector is loaded with tremendous deals.
I am unable to invest more in the market until next Tuesday, so personally I'm hoping against a big comeback before then. Are you panicking, or are you looking at this as a great time to buy? Or neither? History shows that the best time to invest is immediately after a large drop in the markets - so panic at your own risk.
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