FinancialBounce.com

Dow Jones - October 10, 2008

Bouncy Bouncy Bouncy… that’s exactly what it was like being an investor today. The Dow took a beating in the morning–seriously, it scared the living daylights out of me. All of a sudden, POSITIVE. It was like a miracle… THEN… DOWN. Down. down. up. Up. UP! It was ridiculous… +100 points, -200 points, then another -400 points, regain another 200 points… what was going on?

There was a bunch of talk on TV where people had set up “electronic trade signals” where if a stock were to reach a certain point, it would automatically be sold. The thing is, predictions were was that this happened a GRAND scale and a bunch of people were just selling if things were to hit a certain low and that’s what caused the massive 700 point drop.

What does this mean for America? Well, something is happening. A ~600 point increase recovery from that 700 point drop meant that people were starting to probably realize that stocks were now being undervalued. Undervalued means that the companies were absolutely trading less than they are worth–an example might be Google–and they decided they would take a loss if there were to be one and just hold onto the stocks long-term. It’s crossed my mind–take a couple thousand and sprinkle it around different companies, but I decided I would just hold out and see what’s going as well. My current stock portfolio went down the drain this week, so I’m waiting for a recovery before I try to sit and spend more money on investments.

As for other Dow news, nothing really. There’s news that the US Government is going to be buying stake in banks… the first time since the Depression.