Last week, things looked bleak for equity investors. As the Dow Jones and S&P 500 slid to historic lows, and the TED spread soared to a historic high (more on that below), it looked to many like the thing to do was pull out of stocks entirely, and enter safer assets like gold, T-bills, and steady bank savings accounts. But on Monday, the market bounced, led by the news that the U.S. government will invest up to $250 billion to shore up the U.S. banking system in a plan similar to measures taken by several European powers, including Germany and the U.K.
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Looking for the End of the Financial Crisis? Watch the TED Spread
(The Wikinvest Daily Angle, 10/13/08)
The TED Spread: the New VIX?
(Condor Options, 10/9/08)
TED Spread 101
(phantasmix.com, 10/9/08)
