NEW YORK - The Dow sank into a bear market on Wednesday as US stocks fell on growing concerns about the toll that record oil prices are taking on the economy and corporate profits. The Dow Jones industrial average tumbled 166.75 points, or 1.46 per cent, to 11,215.51. The Standard & Poor’s 500 Index lost 23.39 points, or 1.82 per cent, to close at 1,261.52, while the Nasdaq Composite Index slid 53.51 points, or 2.32 per cent, to 2,251.46. LONDON - UK stocks shed 1 per cent, extending the previous session’s sharp losses as miners fell on weaker coal prices and Marks & Spencer slumped after a profit warning, though drugmakers rose. The FTSE 100 closed at 5,426.3 points, down 53.6 or 0.98 per cent. FRANKFURT - The DAX index ended at 6,305.42 points, down 10.52 or 0.17 per cent. PARIS - The CAC-40 index closed at 4,296.48 points, down 44.73 or 1.03 per cent. TOKYO ...

On this week's earnings preview I wrote this in regards to Deere (DE):Major ag equipment player Deere (DE) - I don't own the equipment stocks anymore; at some point the rising cost of steel, petrol products and the like will be hurting the bottom line unless they can pass all the costs along to farmers - over the next year if inflation does not abate this is the type of company who could see profit margins squeezed simply from the constant increase in input costs.Here are the results - looks like a good call with the stock down 8%. Sometimes a rising tide (agriculture boom) does lift all boats. But sometimes you need to think farther ahead than that - as Wayne Gretzky says - don't be where the puck is, be where it's going to be. ("I ...

1 word comes to mind of late - complacency. Today's medium sized sell off had me thinking of the last time the market sold off in a meaningful way. The fact I could not remember is a case in point. It looks like we had 1 day back there on April 11th but other than that since the quarter turned on April 1, it's been all good. Despite almost all bad on the economic front. No wonder everyone berates us with "it's all priced in", and "all up from here". If you review this week's postings you see 1 theme - selling and building cash. I'm back to nearly 20% in cash, and about 18% short exposure which is a very hedged exposure. I still am aghast this market does not treat $120+ crude more seriously - as I wrote ...