Dow plunges below 8,000 - 1st time since '03
Major indexes close sharply lower. Fears grow about economy and auto industry.
NEW YORK (CNNMoney.com) -- Stocks fell hard on Wednesday, with the Dow closing below 8,000 for the first time since March 2003, as ongoing anxiety about the economy and uncertainty about the future of the auto industry weighed on the market.
The Dow Jones industrial average (INDU) shed more than 400 points to close 5% lower. All 30 Dow components lost ground.
The Standard & Poor's 500 (SPX) index slid 6% to its lowest level since March 2003. And the Nasdaq composite (COMP) lost 6.5% to settle at its lowest point since April 2003.
This is the second time, hard core fans of Warren Buffett forsook Omaha - October 10 and yesterday November 19, 2008. This has indicated the hardcore buy and hold share-owners have abandoned ship. I think the market will be bottoming out over next few months as the last line of defense has broke down.
How negative is the mass sentiments? This 2008 Christmas Carol says it all.
You'd better watch out
You'd better not cry
You'd better keep cash
I'm telling you why:
Recession is coming to town.
It's hitting you once,
It's hitting you twice
It doesn't care if you've been careful and wise
Recession is coming to town
It's worthless if you've got shares
It's worthless if you've got bonds
It's safe when you've got cash in hand
So keep cash for goodness sake, HEY
You'd better watch out
You'd better not cry
You'd better keep cash
I'm telling you why:
Recession is coming to town!
Finance products are confusing
Finance products are so vague
The banks make you bear the cost of risk
So keep out for goodness sake, OH
You'd better watch out
You'd better not cry
You'd better keep cash
I'm telling you why:
Recession is coming to town.
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