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Saturday, October 11, 2008

Week in Review: Stop Looking at the DOW Jones ... Look at the Credit Markets ...

"There is more to value investing, than a low dollar sign" - Dan Shy

More and more? Everywhere I look? I hear people talking about 'retracements', and 'great value' and 'fire-sale prices' in the stock market. I hear them talking about the 'last time we saw these levels of the DOW Jones index'.

But I hear precious little from those same people about the TED spread and recent LIBOR jump on that spread. About the impact of the Bond Markets. About the falling prices of Gold and every other Commodity on Friday. About the flight to the dollar, at the same time we see the increasing TED spread. Well ... that's what I'm going to talk about in today's 'Week in Review' video. And please, for the love of god ... listen ...

(Video Included. If you're seeing this from Email subscription? Click on the Title Link in the Email to View the Video ...)

Get to cash. Hard, cash ... today. And get out of debt. Yesterday. We'll see where we stand on Monday. Two banks here in Michigan just failed (They will always announce Bank Failures on Friday), and one of the banks in the County in which I live? Received their assets.

It seems on Sundays? We receive the 'governments plan of attack' for the next week. For all the good it's doing ...

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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