I have been down 8 consecutive days in a row. That is my longest down streak since the end of February-Early March of this year. After that down streak, my portfolio started an almost vertical climb. Perhaps that will happen again. As I have referred to in previous entries, I am heavily invested in financials. In fact they make up over 37% of my current holdings. That could bode ill for my portfolio performance over the next few months. In addition to the subprime fiasco, it now appears that banks are having a difficult time selling loans used to finance leveraged buyouts (LBO). Citigroup (C) may be stuck on several deals including the LBO of Chrysler by Cerebus. C is also involved in the deal to take Allison Transmissions private. Allison Transmissions is being sold by General Motors (GM). Allison Transmissions has one of the highest profit margins of any unit of GM.
The financials may be in for a rough several months at the least.
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