A Crazy Week In The Markets – Opportunity?

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What a crazy week! A week in which the Dow Jones Industrial Average managed to record both its largest single-day points increase and its second-largest one-day points decline since its start in 1896.

Governments around the globe launched unprecedented and concerted rescue operations for major banks in order to unfreeze short-term credit markets and avoid a collapse of the world’s financial system. Interbank and commercial lending rates started to ease with the overnight Libor rate dropping to 1.66% on Friday from a high of 6.87% on September 30.

Jeremy Grantham summarized his investment recommendations in his latest quarterly newsletter as follows: “At under 1,000 on the S&P 500, US stocks are very reasonable buys for brave value managers willing to be early. The same applies to EAFE and emerging equities at October 10 prices, but even more so. History warns, though, that new lows are more likely than not.” Do you agree?

Read all about this in my weekly review, highlighting some thought-provoking news items and quotes from market commentators during the past week.

Tickers: GOLD OIL

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