Today is going to be a bad day for the stock market. All the indexes will be down horrible. As I am writing this warning, I’m not sure what I’m going to do. My initial reaction to knowing a 500 point drop is coming today is to get rid of most of my portfolio and possibly buy later on in the day if things turn around. If things don’t turn around, I’ll keep the cash in safer investments.
What is causing this huge drop? Mostly momentum to the down side because people are running scared due to the slowing world economy and the continued destruction of assets prices.
*Note: (Update: After looking at more data and numbers, the DOW will be under 8, 000 and could get as low as 7,500.) This recession is going to be longer than anything in recent history. So grab a rope and hold on – it’s going to be a bumpy ride.