Position Adjustments

Indexes failed to close higher today as the scale of yesterday's move may have been too much to add on to. One vexing implication to chaining gains together is that, given the lengths to which the Treasury and Fed had to intervene, many of the recovery elements prevalent in previous turnarounds may be missing this time given the severity of world financial problems. Most importantly, the across the board pounding of the general public's investment accounts will certainly result in a less adventurous approach to investing. Further, if lending standards are simply refined, it will eliminate a significant stimulus compared to when lending was less stringent. There also continues to be a constant drip drip of liquidation selling as all position adjustments related to redemptions and financial institutional problems are yet to be completed.