On a Monday that could have kept the panic alive, the Stock Market rebounded with its biggest advance in over 70 years. As the stock market surged 963 points due to the "government plan to buy stakes in banks and a Federal Reserve-led push to flood the global financial system with dollars" (Stanton, www.bloomberg.com), people are left to wonder if this rebound will end the dramatic drop in the stock market. (You can read the full article on the Dow's record day.)
You can also watch this video from CNN Money regarding the "Focus on Fundamentals" for the economy. Mr. Paul R. LaMonica explains what to watch for as the rest of the week continues to unfold.
I still believe that we haven't seen the end of this up and down rollercoaster ride in the economy as many investors are unsure as to what the bailout means, who is going to be affected and what the total damages may be when this chapter in America's history is over.
Couple things to consider:
1) Banks/Financial stocks were largely overlooked in today's rally.
2) European countries staging their own bailouts and in some cases saying we (the U.S.) got it wrong.
Who knows exactly where we go from here??? Let's just hope we begin to get some strategic leadership that will lead us into the next chapter in this story.
I had read an article last week saying the "bottom" had been reached. The author was so sure of it that I wondered how he could make the conclusion but he said that the point had been reached that people would not be able to pass up the opportunity. I wish I could find the article- that guy was "right on" about the Monday lift.