The Dow Jones Industrial Average is going south and this comes from all the banking news being heard right now. Some bankruptcy talks have sent the markets in a tail spin and now the attention will be focused heavily on this current situation on Wall Street. As of right now the market is over 400 points down on the day and this could continue to go down over the next few days. I don’t like this as a buying opportunity right now and I believe the market will go much lower than this. I would wait until after the presidential election in November and try to move in after that. They are bargains available across the board and if you have a long term outlook on your investments now, you could slide in and take advantage of the latest declines. I would like to wait another week or two and see just how much lower the market will go before I put any new money into the Stock Market.
I have always been a fan of the financial and banking stocks, but things are going to get a bit worse for this sector of the market. I continue to like the big medical stocks and this is the best sector to take advantage of right now. The drug companies are in-line with some nice moves that will take place in 2009 and I would be searching out the big pharma stocks at this time. Retail stocks will see the usual end of the year boost, but not sure a lot after the new year rolls around. The drug makers will be a good place to add new money over the next 12 to 18 months and you should see positive gains in this area of the market. Wall Street is going bankrupt and these corrections are long over due and in the long run the Market will be stronger than ever. Hang in there and be patient with these huge losses we might see over the next couple of months. A presidential election and the ending of hurricane season will give the market a surge later on in the year.
