LaPorte Group Blog

I think tomorrow morning things are going to go crazy.  The news is JP Morgan bought Bear Stearns for $2/share over the weekend.  Bear was at about $60/share at Thursday’s close.  The Fed also basically insured $30 billion in losses from Bear Stearns in this transaction.  They also lowered the discount rate, which mainly affects banks on money they lend back and forth, but will affect the market.  Asia is down 4-5% in their days trading.
 
I think the stock market is going to take a huge hit in the morning with a little bounce by the end of the day.  Our bonds and rates should get better, it’s just a matter of how much and how long they stay lowered.  The volatility has been outrageous lately and wish things would settle down.

 

We'll see how my prediction stands tomorrow.