Black Monday for world markets

Every market around the world has virtually crashed due to the expectation of global slowdown that would be triggered by US recession fears. The US markets were disappointed on Friday following the not-so encouraging economic stimulus package from President Bush. China was down 5%, India was down a massive 7%. The 7% decline in Indian markets marked the biggest ever decline in its trading history. Developed economies in Europe stacked declines anywhere between 5% to 8%.

US market is closed today due to Martin Luther King holiday but the futures are indicating a 500 point decline in Dow Jones. It is best to stay away from this market till things improve. The QQQQ that I closely follow will break the August lows on Tuesday morning. The next stop is around March lows. Market is not onlyexperiencing financial fears but that is coupled with recession fears with higher inflation.

We would have to wait and see how world markets open tonight and if there will be any FED action tomorrow morning. Till then stay in cash and be safe. These are tough times for us. But don't worry we won't stay here for long.