Monday, October 13, 2008
Plus 936! Remember this number. This is the largest one day increase in the history of the Dow Jones Industrial Average. This is the first and the last time that this will happen. This erased 50% of last week's loss. Ford Motor increased by 20%. That's a whopping 40 cents on a $1.99 stock: now $2.39. Other stocks did even better. Alpha Natural Resources went up $12.00 or 42%. Why do I never own those when they go up like that?
We'll see what tomorrow brings. There is likely to be some prophet of doom (analyst) who has sold short some stock that needs to go down in order for him to collect. I'm not kidding! But, all-in-all, I think the bottom was 936 points ago. Time to buy. Not tomorrow. But it is the season to buy. If I could be sure that Ford Motor would not go bankrupt, at $2.39 a share, I'd try to own the company.
Borders serves good tea.