The Dow is down 1,000 points and 7% in dollar terms year to date, and down SIGNIFICANTLY more when looked at in Euro or Yen or Gold or Oil terms. Being in cash so far this year you'd be MUCH better off than being in stocks. Especially any stock that had ANYTHING to do with the REIC.
But the past is in the past. Right now the bond market is SCREAMING cash and safety. Even commodities are in total melt-down mode the past few days as investors move to cash.
So, what to do? Stick your neck out, close your eyes, and buy the market? Or put it in cash, knowing that the Bear Stearns "acquisition" will be kabashed, that the Countrywide "merger" will fall through, and that Lehman Brothers, Fannie Mae, IndyMac, CIT Financial, Washington Mutual, Freddie Mac, First Fed and so many more are all looking straight at the abyss?
Will Manias, Panics and Crashes get everything right except the "get to cash" final chapter? Will this financial unwinding be different than every one of them to have ever come before?
These are dangerous and unsettled times HP'ers. But they're also opportunistic times if you play your cards right or get lucky.
So what will you do?
The final phase is a self-feeding panic, where the bubble bursts. People of wealth and credit scramble to unload whatever they have bought at greater and greater losses, and cash becomes king.