As we already know, the media has over exaggerated the subprime loan crisis. Although the current credit crunch is taking a substantial toll on borrowers and lenders, media hype, in my opinion, is to blame for the current market fallout. Nonetheless, the Consumer Price Index is sharply falling and the Dow has corrected approximately 10 percent, which technically qualifies as a market correction. Consequently, I sold out my 2007 portfolio for the remainder of the year.

Today ended in a short covering rally. The Fed’s announcement that it would put $8 billion into its banks’ reserves compelled the majority of investors to cover short. However, do not expect this to be the end of the correction. MZM has begun to fall, which indicates that there has been more money leaving the economy than coming in. The Fed’s move could reverse this, at least for the holidays.

Once again, left with no other practical alternative, I am forced to close my current portfolio. Keep a close 15 percent or 25 percent stop-loss on any stocks you hold and sell it as it hits. With any luck, there will be better days ahead. Stay Tuned!

Kenneth Coleman