In the economic and investing environment that we are in where the gov’t is so involved with every aspect, particularly in our banking and auto industries, unforeseen event risk hovers everyday over typical fundamental analysis and makes predicting the market week to week very difficult.
Asian stocks ex China got hammered and Europe is lower too after Geithner yesterday said “some banks are going to need some large amounts of assistance.”
Also some are citing the GM, Chrysler news as a reason but a bankruptcy restructuring of both is needed not only to improve their cost structure but to purge them of debt which this whole country desperately needs. If prepack bankruptcy is their ultimate destination, the private sector would have handled that 6 months ago and all the gov’t has done is push forward the inevitable, aka Japan’s lost decade.
Don’t expect any substance out of the G20 this week. Payrolls on Friday will highlight the week.