Monday, August 8, 2011
Sell-off as U.S. Rating Drops
I apologize for not updating this past week. I've been pretty busy but apparently, so has the market. I am trying to get some more personal finance posts up but until then, I thought I'd point out the current stock market's performance. Over the weekend, the S&P downgraded the U.S. credit rating to AA+ from AAA. Nothing has fundamentally changed these past two days, but with the market today, the S&P is down more than 6% and this is on top of a 5% drop last Thursday. Equities are getting to look very attractive. Professor Siegel came on Bloomberg earlier today and said that unless you believe there is going to be a double dip recession, stocks are looking very cheap. Will the market continue to drop another 5%? Potentially. Could this be the bottom and everything will rebound from here? Possibly. In the short term, it is almost impossible to time the bottoms in the market, but for those people who are looking to put away some cash for the long-term, now is a great time to get in, even if its just a little bit.