每日市场点评 --- November 15, 2007

We had another triple-digit-swing day on Wall Street for this Thursday. So far in this November, Dow has more than 150-point movement in each of its trading days and this volatility trend may continue for a while. As mentioned before, today is the last day hedge fund investors can redeem their money so volatility is not unexpected. What really puzzled me at this point is the continuous worsening situation in the credit market: nearly all the spreads are higher than August. Precious medals were also getting sold off sharply with gold leading the decline. Apparently, the yen unwinding trade is still ongoing. Treasury bonds seemed to be the only safe place to be these days with 10 year government bond trading at a yield of only 4.17%. Other than the defensive sectors, all sectors were sold off today as investors are clearly fleeing the market. During this kind of turbulent period, remember that less action is better than more action and always stay calm when others are in panic --- sooner or later, the market will go back to normal.