How Low Can It Go?

[Schneed10]

Yeah, Citi said they're posting profits so far this year.

In the markets, perception becomes reality. There's so much doom and gloom out there that it's causing people to contract spending and sell equities at a rate faster than the fundamentals would suggest. In reality, things are bad, but not that bad.

The markets will have more down days in the weeks and months to come as people continue to fret. But eventually some positive economic data will come in, like the Q1 earnings for the Fortune 500 companies, GDP, inflation, jobs, etc. When that data starts coming in positive the psychological rebound will be huge. When you go from so much doom and gloom to actually seeing some positive indicators show up in black & white reports, the tendency is to get exhuberant. This market will bounce back really hard when that happens.