What happens now?  Are we bottomed?  Are we capitulated?  Should I sell?

Did I lose everything?  No. No. No. No.  In my opinion.

History tells us that the markets ALWAYS come back.  They also go lower.  They bounce.

What is the slow market crash?  Well, in comparison, we have certainly crashed.  However, the crash has been orderly.  Not once have we had a halt of trading on the US markets.  This is quite amazing.  Why?  Because it is counter to how things usually happen.  With all of the comparisons in past history, this crash is unlike anything that has been seen.  When in doubt come back to the basic economic principles.  Supply and Demand.  Right now, the sellers rule.  Buyers are gone.  When the selling slows, and indications are that it is starting to, and the buyers come back there will be a HUGE bounce we think

What then?  We called these levels many months ago, so our members are pretty prepared, although it is still sickening to watch.

What do I do now?  Nothing.  If you are a TLO member you have near 50% cash.  This will go down in history as far as these types of websites are concerned.  We are making no moves until we are past the significant recession we have been in for 300 days plus now.  We think we are 2/3s of the way through.

Not a TLO member?  If you hold Lehman stock, it is a total loss.  If you hold bonds either directly or in a Bond mutual fund, you have a chance of recovering some of that money as the company is sold off in pieces through an orderly liquidation.  Time will tell.  Update:  This looks unlikely.

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