So equity markets have taken a tumble around the world since I last wrote about the market. I was expecting to see a January rally, so this bust of sorts came earlier than I expected? Though we still may swing around for a January rally depending on how things go.
And, of course, we've had terrible news since then. 7.2% unemployment, Citigroup essentially being gutted, Alcoa being up a creek without a paddle, and even Bank of America needs more money.
But two things really stuck out to me:
Google laying off workers
House prices to continue to decline until late in 2010
Google is definitely down a lot off its peak of over $600, though the P/E is still pretty high at 19. A higher P/E seems reasonable if the company is expected to grow, but if they start laying off workers, it seems that they are starting to think growth isn't manageable.
And, on the second, if you think housing prices are the root of the problem, then we're still in the thick of this, with no light at the end of the tunnel.