Comments on Today's Market - Fox5 Midday Report

In case you missed my comments today on Fox5's midday report, here are some of the excerpts:

• Going in to the morning, we expected there could be as much as a 1000 points down on the Dow based on the very negative futures.
• The panic was started, in part, due to the negativity on the overseas markets (Japan down ~9%). Several of those markets halted trading due to large sell offs.
• Fortunately, the early morning/opening action was encouraging, although futures were down 550 points (capped at that level), the open was slightly better than that with improvements throughout the morning.
• We are not recommending drastic actions at this time. Investors should not be trying to pick a bottom and, in most situations, it is not advisable to sell at these levels (there are always exceptions depending on particular circumstances).
• There are some positives on the horizon, not the least of which is the huge reduction in oil prices to levels of 1 year ago. That translates into savings at the pumps for consumers and savings for businesses who incur transportation costs or use oil as an input commodity.
• Although the news screams for investors to bail out now, we think it's time for calm, thoughtful action. When the experts are throwing in the towel, historically that has been a good sign of bottoming.
• There's probably more pain coming due to expected forced hedge fund liquidations. That causes prices to decouple from reality (they already have) and shouldn't push you to sell, but may present buying opportunities for younger, more liquid clients.

Tune in to channel 5 for occasional live comments from me and visit Fox5DC.com for continuing coverage of the financial crisis.

In the midst of this crisis, feel free to give me a call at 301-670-0994 with your specific questions. Or, you can email me at dawn@dawnonwealth.com with your ongoing concerns.