When the CEOs’ eyes start to roll back, is it time to buy? Just kidding. But financial times are getting scary, eh?
This reminds us of our first trip abroad as a new widow. We’d taken care of all the tiresome estate details and needed a break. So, early in October 2008, we hopped on a plane and took off for Europe.
Details are now a bit fuzzy and we can’t find our diary, so we’ll just give you the highlights as they relate to investing. You see the Great Recession was just starting (nobody knew it at the time), banks were tottering, financial institutions were on the verge of collapse, one actually did and the stock market was beginning to plunge.
First memory – headline in Wales. “Iceland Banki, Hanki Panki?” Those British tabloids are nothing if not witty!
Two years ago, the Daily Mail headlined troubles in Cyprus: Kebabbed by the Banko Kleftiko. Very instructive. We think Kleftiko may be a play on kleptomania meaning thievery.
Next we took the train to Paris, where we read, in French, “American stock market plunging.” Actually, we didn’t understand most of the words, but the picture of the sinking Dow Jones Average was clear enough.
Later, as the crisis worsened, we read similar headlines in German and Italian. We became philosophical, thinking along these lines:
“Glad we decided to come now! We may not have any money when we get home. Credit card is still working. You have your return airline ticket right here. There’s a pretty nice chunk of cash at home. We own our home and car free and clear and have a huge, fertile garden. You are safe, there’s nothing you can do, so enjoy while you can.”
We don’t know if another Recession is on the way (if you believe the 2008 one is over), but the DJI declined more than $530, or 3.12%, the NASDAQ declined even more at 3.52%, and gold went up to $1,159.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
On the upside, Oregon hop farmers are celebrating a record season of great hops. They will be trucking their produce to the many local mini-breweries soon. Expect a hot time in the old town of Portland soon!
And oil prices went below $40 today for a brief moment before edging back up to $40.45 on New York Mercantile Exchange. Low gas prices here we come! According to the Wall Street Journal:
Investors expected last year’s 46% plunge in oil prices to prompt a wave of bankruptcies and acquisitions across the U.S. energy sector, but many companies avoided such measures by raising money from investors, cutting costs and focusing on their most-productive wells.
Sorry to be such a Pollyanna, but really, life is never all bad. Especially since we have just learned that our local Fred Meyer, since 1998 an entity of the giant conglomerate, The Kroger Co. (NYSE:KR), is still carrying Fleischmann’s Fresh Active Yeast!