U.S. Markets Stuck on the Rinse Cycle

Dow Doom Returns?

This is beginning to look like a trend. A plan is announced that promises a government of one nation or another to pump unbelievable amounts of liquidity and the stock market gets happy for one jovial moment before they awake and realize how bad all of this really is.

De ja vue all over again?

The Sky’s Falling!

Just when you think it can't get any worse. Just when you think the government throwing more money at it will fix the problem. Just when you think .... oh well, what's the point, we all know it's a disaster out there.

Are you starting to wonder if anyone has a clue as to what's going on and what needs to be done to get this problem fixed?

Our economy is deteriorating and doing so frighteningly fast. The Dow is off nearly 40% over the past year, losing over 2,271 points, or 20.1%, during the last seven sessions of trading. The Nasdaq is down more than 40% over the past year as well. Housing has been bruised and battered beyond belief. We could go on and on and ...

It seems like the sky is falling but if you look really close, far off in the distance, you will see what looks to be a light. Yes, that's right, a light. It may be hardly noticeable but make no mistake, it's there.

Do I need to remind you to take notice of how low housing prices are with stocks not too far behind?

Remember when you thought housing prices would stretch to the moon but you forgot that little thing called a cycle? Don't forget about Mr. Cycle. Just when you think he's gone, he has a mysterious way of showing up again. Shortly to follow are the endless cries, "If I only ...", "I should have ...", "I didn't realize ..."

Yes, this will cycle too.