Here are some stunning statistics: Since the market’s peak in October 2007, the stock market has lost $11 trillion in valuation. That includes $2.6 trillion in this year alone. Nearly half of all stocks in the Wilshire 5000 are now trading at less than $5 a share, and more than one-third are under $3 a share.
Things are so rough that the New York Stock Exchange has suspended its $1 a share minimum listing requirement until the end of June.
I know its bad out there for investors but trust me, this is how it always looks near the bottom. The best time to invest is when everyone else is convinced that the market is nothing but a loser’s game. Our strategy is to continue to focus on fundamentally superior stocks. Let’s avoid any stock that doesn’t give us strong guidance going forward.
This will be a fairly quiet week for scheduled news. Ben Bernanke speaks tomorrow to the Council on Foreign Relations. Let’s hope he has some positive things to say. On Wednesday, the U.S. Treasury releases will report on the deficit for February. I expect to see a lot of debt. On Friday, we’ll get reports on import prices, consumer confidence and international trade.
Continue checking in here during the week for more market updates.