Weekend Reads and the Stock Market Retesting the Lows?

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Just in case you had given up on all stock market related news and repressed how much we’ve all lost in our retirement accounts, the markets have actually bounced off the lowest of the lows. In fact, some pundits say we’ve bottomed and headed higher.

I don’t have a crystal ball, nor will I play the part of the all knowing swami, but I do know that markets often re-test their lows prior to going higher.

Just a friendly reminder not to get your hopes up or that we will have some remarkable bit of news to push us to historical highs by the end of the year. So for all the market timers who are feeling lucky, just remember that dollar cost averaging into the market is a safer play.

Favorite Reads from the PF Blogosphere

Darwin’s Finance makes a great case against timing the market in a guest post at JohnChow.com. Timing the market is really a suckers game and the equivalent of telling the “big fish that got away” story. If you do get lucky and time it perfectly, you should quit trading and retire early so you can leave the profession at the pinnacle of your finance career.

Those evil hedge fund managers are counterattacking as increased bad press, heightened regulations and higher tax rates could be forced upon them by threatening to move their entire trading business to more tax friendly countries. Nothing can send chills down a Treasury Department’s budget faster than “We don’t have to be in London.” I would imagine George Soros and counterparts are paying close attention here in the U.S.

Green Living advocates can shout from the rooftops because consumers (at least those living in Duke Energy’s confines) are using less energy.

What impact has the recession had on your service area?

We see demand for electricity falling, primarily in industrial and residential customers. We have yet to see commercial parts of the business reduce demand. Worst case is that demand in 2009 will be slightly under 2008.

I guess all those personal finance bloggers writing about vampire power (here, here and here) isn’t exactly helping profit margins. Boohoo! If you think of energy as lumps of dirty coal, you’ll think twice before leaving your computer on when you leave work.