Stock Market Down 778 Points – Now What?

Dow 778-Point Plunge: What’s Next?
by Martin D. Weiss, Ph.D. 09-29-08

The Dow’s 778-point plunge today was the worst since the Crash of ‘87.

But that doesn’t mean today was a selling climax or that the stock market decline is reaching an end.

Quite to the contrary, the overwhelming majority of investors are still holding on to their shares.

They’re hoping that Congress will still pass some kind of legislation to bail out sinking banks.

They’re hoping that the Fed will continue to inject massive sums into the credit markets to prevent a money panic.

And they’re assuming that these efforts will somehow turn the market around.

Today’s Market Plunge Is
Telling You That They’re
Stubbornly Wrong.

As we have been warning for many months … and as we documented in our white paper submitted to Congress just last week (“Proposed $700 Billion Bailout Is Too Little, Too Late to End the Debt Crisis; Too Much, Too Soon for the U.S. Bond Market,”) …

Whether the Congress passes the bailout legislation or not, the outcome will be similar: The debt crisis will continue to deepen and spread. Many more banks will fail. The economy will sink into a severe recession. And those who stubbornly hold onto vulnerable investments will suffer some of the greatest losses in modern times.

Bottom line: The Black October we’ve been warning about has barely begun. The worst is yet to come.

But never forget: No matter how bad things may get, it is not the end of the world. We have been through worse before, and we survived. We will survive this one too, and we will do it together.

For more specific instructions, be sure to check your email tomorrow before 12 noon Eastern Time.

Good luck and God bless!

Martin

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