The stealth bear market
Posted
Jun 30 2008, 03:28 PM
by
Todd Harrison
This barrage of economic non sequiturs has left us immune to any real measure of financial disaster beyond the amount of cash and coin in our pockets. We no longer even notice this process. We accept it and move on. That's one reason financial disasters seem to skate along public consciousness generating only a vague sense of dumbfounded awareness; it's a stealth bear market.
The New York Times tried to spell it out over the weekend - "Battered by Oil, Dow Touches Bear Territory" - but who can be bothered to pay attention to such things when there's wine to be drunk and bill collectors at the door? What does it mean?
What we know is that through Friday the Dow Jones Industrial Average was down 20% from the October peak. But, really, it's worse than that. The average stock in the Dow is off nearly 30%, and some, like American International Group and Citigroup, are down more than 50%. Few on Main Street have noticed this, or even care anymore, mostly because they're busy pawning jewelery to buy gas and groceries.
Meanwhile, the economic data continues. It's relentless...
Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Executive Editor Kevin Depew. Excerpted from Five Things You Need to Know. Click here for the other four things.