Friday, January 25, 2008

What happened this week?

The expected fall of the stock market in the US last Tuesday was preempted by actions of the Fed (in panic, I guess), reducing interest rates by 0.75% coupled with the 140 billion economic package by the Bush administration.

However, the bottom is still staring, waiting at everyone, indeed, today:

From NYTimes:

Wall Street ended a tumultuous week with a sharp decline Friday, backtracking following two days of stunning gains as investors turned cautious and cashed in some of their winnings. The Dow Jones industrial average still managed to record its first weekly advance of 2008, even as it fell more than 170 points on the day.

The week, which started with a 465-point drop in the Dow soon after the market opened Tuesday, showed that the stock market is still fractious but may be going through healthy process of trying to establish a bottom following weeks of sharp declines.

And from Reuters:

US stocks dropped on Friday as investors tempered their optimism that the economy could avoid recession, and locked in profits on banking and pharmaceutical shares after two days of sharp gains.


And oil is back, again : US crude settled up $1.30 at $90.71 a barrel, while London Brent crude gained $1.83 to settle at $90.90 a barrel.

Also, the Peso, hay....the peso rallied to 40.80 to the dollar Friday on the back of rebounding regional stock markets and Moody’s improved credit-rating outlook on the Philippines.


My guess, next week will not be will be a tumultuous journey to bottom.