esrosedotblog

DOW(N)

Today, the Dow composite had its biggest drop in one day since the market reopened after 9-11.

So much for McCain's assurance that the economy's fundamentals are strong. Which he said again today in Florida.

Tell that to all the retirees there.

I have long joked about being on a fixed and declining income. But it is no joke. As there is inflation, the fixed rate of payment that I have devised is worth less every year.

Now, the portfolio from which my income derives is shrinking. Two ways now that it is fixed and declining.

As for the day, I had a number in mind for the drop. It was 500 points.

Sure enough, I won the office pool. My financial manager at Smith Barney said they expected 300.

Optimists.

I weather through this stuff by reminding myself that the figures only matter if I was going to liquidate today.

Of course, that is not really true.

I depend on earnings for my income and the smaller the pot is the smaller the amount of soup you can get out of it. 7% of X is more than 7% of XC-whatever.p>And it isn't really 7% anymore. More like 5% return on whatever mixed portfolio people have.

Incidentally, the chart in the picture is from last year when the market was up in the 12 thousand area. Today it is below 11,000.

Don't get me wrong. I am not whining at all. I am in pretty good shape compared.

I sat with a guy this afternoon who is still hunting a job that will pay more than minimum wage and perhaps have some health insurance.

I am pretty well off. I am very diversified. But still. Low is low.

This is a good time for everyone to take a deep breath and decide whether 'more of the same' is really what they want. But you can't move an electorate with logic. Only feelings. If enough people feel the pain there will be a change. I think there is a lot of hurt out there.

Labels: Barack Obama, Democrats, election, market