Sonia

Could the Dow Sink Another 50% by 2012?

There has been so much negatism that I'd guess we've seen the bottom, but there are steps we can take to protect ourselves. My son, whose house is half paid for and had a 5.25% mortgage on 15 years, has refinanced at 4.8 for 30 years to reduce his payments in the event that he loses his job. With the much lower payments he could deliver pizzas and not lose his home. Make a game of "how fast can I pay off the credit cards?" Buy quality stocks in essential industries that pay stable dividends, and reinvest the dividends. When you walk a middle course between gloom and euphoria, life is good!

It's a Winter Warming Spell - But More Snow Ahead for Markets

Good analysis. Also, consider the impact of "Mark to Market" on non-financial companies suffering a reduction in disposable earnings because they have to divert income to bolster pension plans shrunken in nominal value by the falling DOW and S&P. If the market rallies and/or "Mark to Market" is modified (or declared politically incorrect,) the nominal value of pension funds goes up and companies won't have this forced diversion of income. There are so many factors in the equation it's hard for investors to know what to do. If stocks are the frying pan, bonds may be the fire.