Where’s the bottom?

This is the $64 million dollars question as we’ve already seen a number of recent false starts in the market, also known as “dead cat bounce.” Savvy experts however don’t believe we’ve reached the lowest mark yet. If we’ve seen the ugliest part of the financial crisis, we still need to see how severe that recession will be and which effect it might have on the markets. Further, we’re not quite sure that we have seen yet the “market capitulation” predicted by some. We should also see some more de-leveraging going on between now and the end of the year which will dampen economic growth and slow down recovery. There are also some folks who think that certain emerging markets like Latin America and Eastern Europe might catch Iceland’s “cold” and finally we still have these credit default swaps lurking in the dark and no one really can fathom how big or toxic they are. So, now more than ever, let’s use some more patience if we want to catch a real good glance at the “bottom.”