The Bottom

I'll be laughed at, probably, but the bottom of the market is here. We will still see a lot of volatility, and an upward trend won't be discernible for another 9 months at least. But, now would be a good time to go in for a low cost, domestic index fund. I'd do it myself except that my liabilities (college debt) grow at a greater rate than any asset would appreciate. So, like the banks, I'm still deleveraging.

The TALF will freeze toxic asset prices as institutions swap CDOs and other junk for Fed money. This should jump start the securitization market beyond what Freddie and Fannie have been ordered to do.

But there's still systemic problems requiring a lot of time and anguish (and legislation) to resolve. Beware anything remotely resembling a bubble: energy, biotech, green stuff, discount retail, etc.