Hi Everyone,

There are some signs at least from a technical point of view that we might have reached a temporary bottom yesterday. The way the market behaved today was encouraging, although we need to see a little bit more of that to really feel better and be confirmed of that.

I think that all the programs that have been proposed by our government and are perceived a negative by many people for our economy are now priced into the market. I think also that all the bad news that people can imagine are now priced in. So we might see a little bit of a rally, possibly 10 percent or so and then level off for a while. Whether or not this is the true bottom of this bear market remains to be seen, I guess we can only hope, although I am not convinced at all.

This might be a time to nibble in the market, since it is at such low levels, but by no means I would commit a large part of my investment money. It might also be time to look at some companies that possibly could benefit from all the spending coming out of Washington. But be aware of the inflation threat that is brewing and might throw us right back into recession once we actually see a little bit of a recovery from the current doldrums.

As always, please feel free to comment.

Cheers,

Patrick