Stock Commentary - New York week to Sept 29, 2008

NEW YORK: equities experienced another roller-coaster week in the reporting period to September 29, as the US government made strenuous efforts to try to stabilize the financial markets with a proposed $700.0 billion bail-out. This was rejected by Congress on September 29 leading to a 7.2% slump in the Dow Jones after the vote, the biggest one-day fall, and the index down 5.9% on the week. Pharmaceutical and biotechnology stocks fared quite badly, with just 10 of those tracked rising and 26 seeing a fall. The continuing financial drama, while leaving investors unclear about where to put their money, may have solved one dilemma for those who are, even reluctantly, staying in the market. The general thought is that, post-election, regardless of who wins in November, there will be no money for any major overhauls to the health care system. The prevailing thought seems to be that minor tweaks will not drastically affect the health care industry. So the sector looks like it could once again be a defensive play, especially in an environment where industries such as energy have major economic sensitivity, though investors and analysts alike agree that decisions have to be made on a stock-by-stock basis.