04 August, 2007

Bears continue the Rampage

The markets were once again battered this week as credit-risk sentiment swept over the market and a July jobs number came in softer than expected.
A couple of mid week positive days were overshadowed by Friday's over 2% drop in the major indicies. As money poured into REITs in Canada the overall market bearish blanket held the TSX down with an overall 240 point loss.

American Markets
Dow: down 281 points (-2.09%)
Nasdaq: down 64 points (-2.51%)
S&P: down 39 points (-2.66 %)

Canadian Markets
TSX: down 248 points (-1.80%)

There seems to be little indication that these loan fears are subsiding and the "market-correction" appears to be in full swing. The only question seems tobe, how far still do we have to fall. Some of the major companies in both markets are becoming so cheap that it'll be hard for big investors to continue to jump ship or stay on the sidelines. The bargain bin is filling up and as such the floor should come soon.

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