Investment experts Say Market Melting Down, Oh Really?

The headlines are screaming today about the credit market catastrophe and its effects on the Street. Ah, sorry but I;m not seeing those effects, are you?

I was reading an article on Marketwatch where they printed the following statement from an investment expert (August 16, 2007).

“This market is going down like free beer - we continue to have concerns on the credit side of the balance sheet, with Countrywide tapping an entire credit line to shore up its business," said Art Hogan, chief market strategist at Jefferies & Co. "I would say if there had been a day when we're trying to price in worst-case scenario, this might be it."

So with this kind of statement you would expect the markets to be down, what, couple of hundred points, 10-20%. This is a cataclysmic statement.

At the time I pressed submit for this article the S&P 500 was down 14 points (-1%) and the Dow was down 142 points (-1.2%).

Ah excuse me, but where is the meltdown? If the market tanks it will only be because of the hype and hot hair talking it down.

I will take the free beer though.

Sam Cass
Sam Cass: Sam Cass, MBA, JD, University of Texas at Austin. Always a fan of Leonardo Da Vinci.

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Comments

  • Cindy Daniels

    August 17, 2007

    The market is pretty far down from its peak this year. I believe it has given up all of its 2007 gains.

  • RobMinton

    August 17, 2007

    People like Art Hogan and everybody you see on TV are just self-promoters. You could have seen them in June saying that the market was going way up, and you can watch them now saying that it is falling. These guys are fantastic at telling you the obvious.

  • Sam Cass

    August 17, 2007

    It did indeed turn into a meltdown. But it was a self fulfilling prophecy. When they reported it, the market was hardly down at all. The media talked the market down today.

  • Harlan

    August 17, 2007

    No, you were right. The market only finished down a few points and less than 1%.

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