Suckers Rally

Yesterday the Dow was up by more than 300 points, and it felt good. Every news show talked about how nice it was to have a break from the slide. And it was nice. But I'm a long way from feeling like this is the end of our troubles.

With the market struggling to maintain it's current level, which is half of the record high (the highest closing price ever was 14,164.53 on 10/9/07), we can expect the trade to get a bit violent. Emotion-driven swings will whiplash us around as traders react to the latest rumors and news releases. At times, like yesterday, this will feel great. But not always.

The depths that we have reached, although painful, may not be the end (do I hear 5,000?). There are many jobs still in trouble, consumer confidence and spending will be extremely slow to warm up, and the number of unanswered policy questions still lingering in Washington D.C. will serve as a weight for at least the next six months. 2009, unfortunately, will remain a very risky time for us all.

Hunker down!
Do your work. Love your family. Remember to breathe. This to shall pass, albeit slowly. And when we emerge we will be stronger, happier, and less spoiled, all of which we need.