The Dreaded ‘R’ Word
5th February 2008
Stocks plunged more than 3% today, the biggest drop in nearly a year, after the ISM Non-Manufacturing Index fell well below expectations, possibly signaling that the US economy is already in recession. Just to keep the snowball rolling downhill a FED official said today that the economy faces the risk of a recession.
We are headed for a test of last month’s lows in the stock market. I would not hold my breath in hopes that the market passes that exam.
You should be making some profits on those bearish option plays you made a few weeks, or even months ago.
- JD