Here are some thoughts on a number of today's hot topics. Many of you emailed us asking whether Tuesday's sharp retreat in the DJIA signalled the start of a bear market. The answer is no.
Most stocks are already in a bear market.
In fact, current conditions in the broad market are the ugliest we've seen since 1987. The retail, paper, pharmaceutical, airline, chemical, regional bank, health care, trucking, household product and automobile sectors are among the many groups in the midst of major downturns. Meanwhile, the divergence in breadth has been noted for months. With the Fed determined to raise rates, and crude skyrocketing to its highest price in more than a decade, we're afraid conditions could get a little worse before they get better. Downside risk for the DJIA is in the 9400-9300 area.