The Dow’s 6-Year Low
We’re seeing the DJIA at a point range not visited since 2002.
Obviously there’s little relief for equity investors as the market digests news of the stimulus package and pessimism reigns concerning the benefits of the package to the economy anytime soon.
Despite the Obama Administration’s efforts to jawbone about the future for the economy (and the fact that the stimulus package has exhausted much of the financial muscle the Administration can flex for the next couple of years), investors continue to sit on the sidelines.
I’m expecting April’s earnings season to indicate the disastrous state of the economy through the March quarter and major employment contractions to continue into the spring. Employment is a lagging economic indicator.
Where do equity investors go from here?