Thank God February Only Has 28 Days

I fear that March may be the worst month so far in this financial crisis. The banks worldwide are suffering massive losses and the number of banks being effectively nationalized is growing. The continued relentless stock market decline in very oversold technical territory foreshadows lower levels (6,500 Dow) and possibly a crash (25% very quickly) . If you are now a buyer of equities you are either a gambler, or a smart contrarian. If you own fixed annuities, especially Hartford, Genworth and Lincoln Financial watch the stock price of each, they are crashing. I would consider withdrawing my money if I did not have huge penalties to do so. The risk level in the financial markets is extreme, please keep that in mind.-Lou

Brutal February for Blue Chips

A late burst of selling sealed a dismal finish for the stock market, which hit a fresh 12-year low on Friday as Citigroup sold a bigger chunk of itself to the government and General Electric slashed its dividend, spooking investors who were already jittery.

The Dow Jones Industrial Average dropped 119.15 points, or 1.7%, to end at 7062.93. The blue-chip benchmark ended down 937.93 points, or 11.72% on the month -- the worst percentage drop since 1933, when it fell 15.62%. The Dow industrials have fallen six months in a row and are now more than 50% off their record highs hit in October of 2007.

The S&P 500 fell 17.74 points, or 2.4%, to 735.09. Its financial sector dropped 6.5% and its health-care sector sank 4% on fears that President Barack Obama's reform plans will carve into the profits of drug makers and insurers. The S&P is off 53% from its October 2007 peak and has now seen its worst six-month drop in percentage terms -- 42.7% -- since 1932, when it dropped 45.44% in the six months ending in June.

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