Not sure if markets are factoring this downgrade considering it...

Not sure if markets are factoring this downgrade considering it was announced after DOW close.

Markets for so long have been climbing on uncertainty. Last few months its been gradually turning into fear, last few trading days is definitely fear and some panic.

Markets are still in a state of fear and anything fundamentally negative is going to result in a sell off.

Personally I think it would be healthy for another 500-1000 pt sell off over the next few weeks on the DOW. This would take a lot of fear out of the markets and then IMO if nothing fundamentally negative surfaces we will see a rally towards the end of the year.

If this rally does come about and you have investment exposure then maybe a wise move to use that opportunity to liquidate at least part of your portfolio. Over the longer term this debt crisis is going to get very very nasty.

I just don't feel this is the pivotal point where markets and economies for that matter will seriously decline. After it settles in the short term markets will at least anticipate government stimulus.

Crazy times are back thats for sure!!