Even though world stocks slumped to their lowest levels in five years Friday. Even as measures from the U.S., UK and other countries to fight the worst financial crisis in 80 years have failed to calm credit, money and stock markets, and quell investor fears.
Lehman Credit Default Swap Jitters
One key focus for the market is the pricing of Lehman Brothers credit default swaps. A possible scramble to cover obligations there has some market participants worried about a sell-off.
"It's very clear from the net open interest that a lot of the market is already settled or bought the bonds ready to settle now," said Tim Backshall, Credit Derivatives Research.
Experts said the market was aware that any government actions are some time off, so participants will likely focus on fundamentals and the upcoming earnings season.
"How far down do earnings need to be cut in order to to get to fair value?" asked Phil Orlando, of Federated Investors.
Looking for the End
Most of the day the experts were preoccupied with whether or not the market would reach the end of its ongoing fall.
Art Hogan, managing director at Jefferies, said today the market will hit a bottom.
Other experts may disagree, and their solutions are below: