So Basically…

Everyone got freaked about the Dow, more freaked about China with the Shanghai market down more than 9%, Gold and Silver held up well initially then tumbled on selling to make up for losses, Vice president Cheney was almost assassinated in Afghanistan, Durable Goods tumbling 7.8% showing further signs of a slowing U.S. Economy, GDP was revised lower from 3.5% to 2.2%, Former Federal Reserve Chairman Alan Greenspan warned of a Recession by year end, Houses are getting cheaper, Iran’s decision to continue its uranium enrichment program… and Remember that your net worth and self-worth are mutually exclusive endeavors!

Articles You Should Be Reading

The Daily Wealth pointed out that there were too flights people took to get out of stocks.
1. The Japanese Yen ETF (FXY) – Rose almost 5% this week. The Carry Trade is unwinding due to global speculation and rising interest rates.
2. I-shares Lehman 20-year Bond Fund (TLT) – Rose 1.3% on Tuesday alone. Investors still chose bonds in times of turbulence.

Have investors forgotten about gold as an asset class? Minyanville tels us that if you “Ask individuals how much of their assets are allocated to gold and you’ll likely get blank stares”. 50 years ago people would at least relate to you.

A “system glitch” in the Dow Jones, due to an unprecedented high trading volume, intensified Tuesday’s sell off (-200 points in moments). This is due to increased computer regulated trading, programmed to execute trades immediately upon certain conditions.


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