Taking money off the table
The quick run up 150 points to start was a nice sight, but as soon as investors caught wind, they were already dumping into the upside. This should be enough proof that investors are ready to flee the market and come back later when times are better. Investors just aren’t buying the economic stimulus package, the $200 Billion in loans, or the rate cuts as a viable way to stimulate the economy.
Now looks like the perfect time to take some money out of the markets and into some safer, less volatile investments. The 400 point rally yesterday and minor profit-taking today signals that people want out. After a short, unsustainable run up, the market responded by selling off shares. The credit crunch is sending investment banks to sell off their holdings of stocks and bonds in favor for cash to cover their margin requirements. The lending industry is suffering, so banks are paring losses with their own holdings. After a move like yesterday’s, today seems like just an average day.
Now is the time to start cutting back on US assets and look overseas for better returns and protection from a currency drop. Coca-Cola is a long time favorite for going overseas as a majority of their business is done outside of the US. Intel and Unilever also top that list of companies that are priced in dollars but do business in other currencies.