Just when some stocks looked like they couldn't go down anymore, they did. Bad news from one firm will zap its entire sector. Efficient market theorists will argue that there's tons of information available about big companies, that all investors know what's going on with those firms, and that you can make more money chasing other kinds of stocks. I think they're wrong. Having a lot of information available is a big plus to do-it-yourself investors. And over time, any given stock will be fairly valued. However, short-term market moves are largely emotional, and that can afford some great buying opportunities. Some terrific "Shaquille O'Neal companies" have gotten clobbered when bad news at another firm caused big sector sell-offs. I'm talking about companies that may have lost 25% of their value in the last couple months without anything at the companies having changed. There are also bargains to be found among firms whose earnings or revenues may be slowing a bit that have gotten hammered. If you think you can't make money in big companies, think again. Buy 'em on sale.

Third-quarter GDP growth slowed to 2.7%, vs. expectations of 3.6%. That follows 4.8% in the first quarter and 5.7% in the second. Almost all was due to an unexpected drop in government spending. The big question is, will the Fed get trapped in a stagflation squeeze? That is, will high oil prices push up inflation, encouraging the Fed to raise rates, while at the same time the economy slows too much and needs a rate cut?