Thursday, April 2, 2009

CURRENT MARKET: DISORDERED STATE


(click on image to expand)

During the past 12 months the Dow Industrials have had an even lower return and higher risk than the average for prior extremely disordered markets. The high volatility of extremely disordered markets includes large swings both up and down. While the stimulus and bailout programs should provide the credit necessary to eventually restore normal market structure, so far the quantitative evidence is consistent with a disordered market state.

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