Hi Scott, Another long term barometer I've used successfully over the years is the price of the brokerage stocks. I don't track as many as I used to but here's the rundown:
AG Edwards (AGE), Recent Hi - $48+; Today - $30+, down 37%
Legg Mason (LM), Recent Hi - $64+; Today - $$54, down 16%
Raymond James (RJF), Recent Hi - $36.50; Today $20+, down 45%
and how about financial institutions?
Franklin Funds (BEN). Recent Hi - $57+; Today - $36+, down 37%.
It's been quite some time since we've had a real sell-off in this area. In the past I've had spare cash available for just this sort of thing, but this time I've not reserved any. I've had a change of heart in the basics of the brokerage industry and decided that my last round was to be my last. However, market bottoms have regularly occurred when the brokerages have given up 35% to 50% of their previous high values. Maybe we're closer to a bottom than we think. After all, Brokerages make money whether the stocks are being bought or sold. so why the panic??? I've never figured it out, but it's a pattern that seems to want to repeat itself with severe market breaks.
Best regards, Tom |
