The last week of November gave us hope. After 2 months of slaughter, the last week of November gave us hope that the worst was over and there is light at the end of this dark tunnel.
We really should have known better. Just when we had hope, Wall Street plunged another 680 points on Monday and the rest of Asia follow suit. It was the fourth-steepest loss the history of The Dow Jones Industrial Average for the blue-chip index and bleak economic news from around the globe looks like things are going to go bad again.
Technically, this is not a surprise. Most have already got confirmation of a recession in the United States and everyone expects bad news from Europe and Asia. The thing that worries people is that there will not be a year-end rally this year.
No matter how bad things were in the past, there is almost a guarantee rally at the end of the year. This not only window-dress the books of the companies, it also serve as a lunching pad for the next year.
It seems that this will not be the case this year. People are writing 2009 off as a loss year, one month before 2009 even starts; we can safely say goodbye to the annual year end rally.