| A commonly used measure
of US manufacturing fell to its lowest since 1948 in December, 2008. Demand for products
including cars, appliances and furniture fell.
This indicates further cutbacks in factory jobs and production
during 2009 are likely. |
| Separate figures
indicate a pattern of slowed manufacturing is evident in Asian and European
economies. Exports, a major driver of the US economy, declined
significantly during the fourth quarter of 2008. |
| During 2008,
the S&P 500 stock index recorded its third largest
annual decline. Its only larger declines were recorded in
1931 & in 1907 -- its largest-ever decline. |
| In 2008, the S&P 500
index rose or fell over 5%, 18 times. In the previous 51 years, the S&P 500
index rose or fell over 5%, 17 times. That is not simple volatility. It
indicates market chaos. Market participants cannot comfortably identify
valuations in order to determine whether to buy, sell,
or hold. |
|
Major markets including real estate,
financial, commodity markets are in at a minimum intermediate
downtrends. |
| Asset
valuations are declining. Asset valuations show
no sign of increasing. So why buy? |