The bears are roaring

Don’t you just love the moxie of “The Big Three” automaker CEOs flying their private jets to D.C. and asking taxpayers to give them a $25 billion loan…. talk about arrogance.

Something tells me the next time we see them will be under the new administration next year, when their PR flaks suggest they leave their planes parked and they hop into one of their hybrid vehicles and drive it to the steps of the Capitol.

I won’t bother addressing my distaste for any bailout of these companies until the next time around, so let’s take a look at what’s going on down on the The Street this morning.

The roar of the bear is getting louder, with the Dow Jones Industrial Average (DJIA) dropping 427.47 point to 7997.28, marking its lowest close since March, 2003.

The S&P 500 fell to 806.58 at the close yesterday, marking a 6.1 percent decline, with its financial group leading the way with an 11.2 percent slide.

Though it appeared for a short while yesterday morning that some indexes may have made gains, that was quickly nixed when the Consumer Price Index posted its biggest decline in 61 years, followed by a report that new residential construction fell to a record law, and policymakers in the Fed’s interest-rate meeting dropped hints that they are expecting the recession to last at least through the first half of 2009.

Not really a surprise to me. I’ve been saying all along that people who have money they need to keep safe, such as 401k’s should not have that money in the market right now. They’re better off waiting through at least the first part of next year to then decide which funds may see the best gains as the market slowly recovers — but it’s also not a bad idea to not try to predict a bottom and instead hold your money to the side until the market starts showing signs of recovery.

In other words, there’s no reason to take losses in the market, just to be part of the recovery. I prefer keeping my money safe on the sidelines and not taking any hits in the market, and will start funneling it into funds again when the market begins to recover.

But that’s not to say that it’s not a good time to snatch-up some good quality stocks with after-tax play money. Some companies on my due diligence list right now are ones that pay dividends, such as Verizon and AT&T.

As I type this at 6:30 this morning, the street is down 50 points below fair value and all eyes are looking for the jobless claims report, which should come out this morning.

Just remember the usual disclaimer: Don’t base any of your investment decisions on anything you read here. Do your own due diligence, or at least enough research to pick the right professional to do it for you.

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