In the wake of the failure of The US House of Representatives to pass the bailout bill, stock markets are crashing:
- The Dow is down about 470 points and the S&P about 66 as I write this.
- The Fear Index (VIX) shot up as high as 46 – the highest level since July 2002.
This is fear, this is panic, this is capitulation – at least short term. No guarantees in this game. But this is when you buy.