Massive Buying Opportunity?

On Monday, I told my New World Investor subscribers after the market's close that investors seemed most worried about the lack of a solution for the problems at insurer AIG, although both Washington Mutual and Wachovia Bank also had people worried. But that's it for the poster children of the credit implosion. With Merrill Lynch being taken over by Bank of America and Lehman headed for liquidation, getting AIG, WaMu and Wachovia resolved should not take long.

Well, Tuesday night's $85 billion taxpayer-financed bailout of AIG resolved that one. Rumors are rife that WaMu has to find a buyer by Friday, or the FDIC will take them over after the close. That's two. Wachovia may not need to be sold or taken over because they wrote their ALT-A loans a bit differently, but even if there is only one big problem left after this amazing week, I think the market will call that a win.

Michael Murphy gives you the next support level for the S&P 500 and tells you what to look out for in the meantime. Keep reading...

by The Freshman |  09/18/08  |  Stocks: AIG, WB, WM,