Tag Archives: Markel Corp
The mercury is climbing, blossoms are bursting out — so does Wall Street finally get to celebrate a springtime of its own? For eight long months now, a ferocious credit crunch, unprecedented since the Great Depression, has trapped investors in a deep freeze. Not only stocks and real estate, but even some of the (reputedly) safest bonds and money market instruments fell victim to the Arctic blast.
Happily, I’m detecting hints, here and there, of a thaw. It’s taking a lot longer than I had hoped, but we will see the end of this new Ice Age. As a balmier climate sets in, we can look forward to healthy markets again — and a return to the steady, consistent profits we enjoyed from 2003 to around mid-2007.
We’re getting there! Pretty it’s not, and painful it certainly is. But amid the gloomy headlines, in the jaws of a credit crunch, with a recession impending, the stock market is creeping toward a major bottom.
Brace yourself for a bumpy landing! We’ve been cautioning you for the past several weeks that the stock market would need to “test” its January low, and possibly break to new lows, before a sustainable rally could begin. It looks as if that test is now under way.
Stay on the defense! Stock prices floundered this week, with the blue chip indexes now edging toward their fourth down-month in a row. This kind of action is almost unprecedented at the turn of the year, having last been seen in late 1940 and early 1941.