Dow Jones Stabilises, But Trouble is Coming

The Dow stabilized yesterday… but the dollar continued to drop.

“I sold all my stocks,” said an old friend yesterday. “I just think this is going to get worse.”

Our old friend is neither an economist nor an investment analyst. But he dresses well. He was wearing square-toed shoes long before other men we know. He is a trendsetter; maybe more in tune with the ‘zeitgeist’ of our time than an economist would be.

Success is a hard thing to overcome. After so many years of generally rising prices, it is hard to see a downturn coming. Here at Markets and Money, of course, we have been seeing a downturn coming for the last eight years. The economy needs a correction; we’ve been waiting for one for a long time.

But now, for whatever reason, our friend feels the time has come.

We don’t know, but we find a sense of gloom spreading within our own business. On a conference call last night, we found our US-based colleagues unusually fearful.

This is not the time for new projects… not the time to make new investments… not the time to take risks, they seemed to agree.

It is funny how these attitudes creep up on you. They come in the night, when you don’t see them. You wake up in the morning and they have taken over your body. You find yourself wanting to slash costs… slash capital spending… and slash your wrists.

It may be that the fundamentals are exactly the same as the day before. But suddenly, you sense that trouble is coming… and that you had better be careful.

Bill Bonner
Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.
Bill Bonner

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1 Comment on "Dow Jones Stabilises, But Trouble is Coming"

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Nobby Clark
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Your poll is crap. How low indeed…what about how high??
The resource boom has at least another 3 years to go.We are still in a bull cycle and this is ntg more than a correction.
You media types have no idea.
BUY IN GLOOM AND SELL IN BOOM….

Regards

wpDiscuz
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