The market hit its most recent high on April 23. From that high the S&P 500 is off 12.5% with its low today. I warned earlier this week about buying the dips. I heard stories of people who went in on Wednesday and committed a significant amount of cash to buy. I'm not saying that the investment won't be rewarded, but it will take longer to get back to positive territory. I talked about three issues weighing on the market. First, was the ADP employment report of neutral at best, second, jobless claims having disappointing numbers today, and the employment situation tomorrow morning. The jobless expectations were lowered yesterday to 180,000, from 200,000. Two other issues that were on my mind were the election in Britain and the problems in Greece. The market declined the most today, at least so far, when the live pictures were broadcast on TV of the riots in the streets in Athens. There is an important message to Washington from what is happening in Greece. People are affected by the changes the politicians decide to make, and sometimes they do not like what the government decides on their behalf.
I think the jobs number could disappoint and the sell off could continue. I'm look for a number off about 20% on the S&P 500 before we start up again. This time cash can be a place to go and stop losses, but you will not earn anything on your money.
90 day T Bill yields 10 basis points.