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To: 4figureau who wrote (1649)	10/8/2002 9:30:38 AM
From: 4figureau	Respond to of 5423

Market carnage hits $8.4 trillion >>Non-stop destruction. Investors who thought the market would have to recover after $4.5 trillion in value disappeared through 2001 have had their confidence crushed as they watched an additional $3.9 trillion get wiped out so far this year. Aggressive selling by large investors. Big mutual funds are selling into the rallies to make sure they have enough cash to handle redemptions, says Ed Wedbush, CEO of brokerage Wedbush Morgan. The swings are amplified by computerized trading — which triggers selling or buying when stocks hit preset levels, he says. Up to half of the New York Stock Exchange's trades are coming from automated programs vs. the typical 20%, he says.<< By Matt Krantz, USA TODAY Investors continue to suffer as stocks hit a multiyear low that has cut the total value of the U.S. market to half its March 2000 peak. The Dow Jones industrial average, Standard & Poor's 500 and Nasdaq composite are now at their most depressed levels in half a decade. The slide has brought total bear market losses to $8.4 trillion, Wilshire Associates says. As has become common recently, investors had no shortage of reasons to sell Monday: Sears issued a profit warning; the standstill continued at western U.S. ports; Cisco's CEO gave a gloomy assessment of business conditions; and President Bush prepared to give a speech on the potential for war with Iraq. But just as harmful as the bad news barraging stocks is the market's inability to mount a lasting recovery, says Todd Leone, trader at SG Cowen. "Every time the market rallies, sellers come back in," he says. Last week, investors could find some solace in the fact that the S&P, considered the broadest market gauge of the three indexes, had not set a bear market low. But Monday, the S&P hit a fresh low in unison with the Dow and Nasdaq, leaving it at a level not seen since April 1997. The bear market is now close to becoming the USA's worst ever. Behind the slide: Non-stop destruction. Investors who thought the market would have to recover after $4.5 trillion in value disappeared through 2001 have had their confidence crushed as they watched an additional $3.9 trillion get wiped out so far this year. Aggressive selling by large investors. Big mutual funds are selling into the rallies to make sure they have enough cash to handle redemptions, says Ed Wedbush, CEO of brokerage Wedbush Morgan. The swings are amplified by computerized trading — which triggers selling or buying when stocks hit preset levels, he says. Up to half of the New York Stock Exchange's trades are coming from automated programs vs. the typical 20%, he says. Bad earnings news. There have been 30% more earnings warnings this quarter than last. No panic. Investors are less fearful than they were when the market last bottomed, according to the Chicago Board Options Exchange volatility index. That's bad because rather than getting the slide over with a crash, the declines are gradual and constant, says Todd Salamone of Schaeffer's Investment Research. "There are still more bulls than bears," he says. usatoday.com

To: 4figureau who wrote (1649)	10/8/2002 9:40:25 AM
From: 4figureau	Read Replies (3) \| Respond to of 5423

Bear News: Economy fuels another rise in problem loans - FT (10/7/2002 8:31 PM) news.ft.com Consumer Borrowing in U.S. Increased by $4.2 Billion in August, Fed Says - Bloomberg (10/7/2002 2:14 PM) quote.bloomberg.com Brazil's possible leftist tilt may jolt US, region - Reuters (10/7/2002 6:03 PM) biz.yahoo.com New data suggest Japan recovery faltering - FT (10/7/2002 8:50 PM) news.ft.com India's Budget Deficit May Approach Decade High - Bloomberg (10/8/2002 7:08 AM) quote.bloomberg.com Time Inc to fold Mutual Funds Magazine - FT (10/7/2002 8:38 PM) news.ft.com