Still Backing Up

Markets are still retreating because of the crunch in the credit market. The Dow fell below 13,000, and the S&P 500 is now showing a loss for 2007. The Federal Reserve continues to add cash to the situation, but the markets don't seem convinced. The talk is that Bernanke will have to adjust his philosophy and opt for a rate decrease. While the backward steps are unsettling, it's also a time to reassess. If you've got cash, you may want to go shopping among large caps. I don't expect a change in tone until September. DJIA -167.45 NASDAQ -40.29 S&P 500 -19.84