Yesterday emergency Fed actions to cut the prime rate by 0.75% is indeed a little too late. It's equivalent to an electric shock to a non-beating heart, even though the heart is temporarily revived, who knows when it would stop again. And the US market probably needs to undergo structural changes akin to a heart operation in order for any recovery.
Currently, sentiments are so bad that regardless of what the fundamentals say, investors would probably not touch any stocks. Hence, even if good news like higher earnings were reported, Dow are still falling. If only drastic measures had been taken earlier, the downturn would not be so bad. Gauging the performance of DJ after the rate cuts had been announced, it does seem to slow the fall but there's still no rebound in sight yet. Thus, this electric shock did not even revive the heart and more shocks would have to be prescribed in order to revive the US market.
I would advise to stay out of everything as cash is king now.
