Market Tumbles… Recession Fears?

Posted in Stocks

Today was a sad day for the NYSE. The DOW closed down 370 points, the biggest one day percentage drop since February 2007. Personally, I suffered major losses. I bought 500 shares of both NWA (Northwest Airlines) and ABK (Ambac) on news that oil prices dropped and a recovery plan is in the works for the bond insurers, respectively. However, they both closed down around unch, but I bought too high mid-day when they were both on an upward trend, so I suffered major losses by the end the day (don’t want to name specifics, but I lost in the $X,XXX).

Market plummeted because Federal Reserve Richmond President Jeffrey Lacker dropped the “R” word in a speech today. What is the “R” word? Recession. And that obviously scared the bee-Jesus out of investors. Not to mention poor financial sector reports and other misc. bad news. Heck, I was just watching CNBC, and they declared today as “Terrible Tuesday”. Boy, they were sure as hell right.

As they say, you win some and you lose some. So far, my stock portfolio over the past month still has a 4% increase, even after today’s substantial losses. And I’m pretty sure we’ll bounce back tomorrow. Markets have been declining heavily for a few days now. It’s about time for investors to regain their confidence and buy some damn stocks. How does “Winning Wednesday” sound to you?