How low will the markets go?
In what proved to be a dead cat bounce for a couple of days, it seemed that Global markets had rallied off the lows. I spoke to a few city types who assured me the Hedge funds had closed their shorts and gone long.
But then today has proved another tough day with the FTSE down 3.5% to a new low for the year and Global markets all in risk-off mode?
So for the weekend, where are the markets going to go. Oil is down below $50 a barrel and staying there, will this itself cause a bounce as that has a deflationary effect across the whole world? Will that save airlines (I doubt it)? Will the market carry on witht he FTSE headed toward 5000 and the Dow 20,000?
Or is this all overdone and the bounce back be strong next week?
Interesting times ahead.