Dow takes a dive as bailout bill fails in Congress

Woke up this morning to the sound of sirens. Not only outside our homes but also in the financial markets as the Dow plunges 777 pts on Monday trade. I'm sure there were a lot of panic investors who sold just as the news of the bailout bill of USD700B failed in Congress came about wiping out more than a trillion dollars in paper loss.

The Dow industrials, which were down 210 points at 1:30 p.m. EDT, nose-dived as traders on Wall Street and investors across the country saw "no" votes piling up on live TV feeds of the House vote. By 1:42 p.m., the decline was 292 points. Then the bottom fell out. Within five minutes, the index was down about 700 points as it became clear the bill was doomed.

Well, we have not seen this huge drop before as it was the biggest drop in history, and somehow, records are meant to be broken. The last huge drop like this was in 9/11 where 684 pts were erased from the Dow, and that didn't seem too long ago. There will be more of these big drops to come but will we get to see it? I don't know.

It certainly is scary to see the financial turmoil in the US trickling down to the rest of the world but if you were not invested and holding on to cash(great move!) this would certainly keep you on the lookout for good stocks to hold and ride out the turmoil. Start doing your homework because the greatest opportunity may be unfolding...