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From Kirsten Bischoff, Opalesque New York: In the November 10th HCM Market Newsletter Michael E. Lewitt cautions readers "Investors need to prepare for the possibility that U.S. equity markets could fall by an additional 50 percent by the middle of 2009." Lewitt, co-founder and President of Boca Raton-based Harch Capital Management, who has authored the in-depth HCM Market Newsletter since 2000 goes on to say "HCM's review of third quarter financial statements of hundreds of companies with global businesses, as well as reams of macroeconomic data, suggests that economic activity literally fell off a cliff in September. One sign of this is the Baltic Shipping Index, which began to drop earlier this year but then plunged 88 percent since September 1:" (Source)

Shipping funds share bleak outlook for industry In a letter sent to investors of the Okeanos Shipping Fund (which has returned +3.03% YTD) the outlook for the industry is bleak, described simply, "The freight market has collapsed". Where previous expectations included a two year peak and slowdown, the tremendous problems within the global financial markets have caused an exaggerated effect on shipping.

Okeanos took a cautious approach in October as volatilities exceeded 150% and observed "The speed and violence of this collapse is as unprecedented as it was unexpected." Tighter credit ......................

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