Indeed. The S&P closed below the former lows of 741 Friday. The market could well plunge next week a la 1987.
-ccm
Additionally we can expect more collapse in the real estate sector. Obama just put thru a cut in the mortgage interest deduction for anyone or any family with more than $250K per year to 28% down from 35%. This is effective immediately. This spring and summer are going to be a complete turkey shoot in the Real Estate markets.
The Dow has made its 50% Fibonacci retracement. Next up is the 63% retracement, to around 5200. If it finally bottoms at 80% or so down, that will be at around 2800. The Nasdaq corrected downwards about 80% after the 2000 tech crash; the Dow is due for an 80% correction, too.
Well based on real value (i.e. a gold standard) the market should be around 3,000 right now. I am actually amazed this line of resistance held this week. I figured by Mar 1st we would be in the 6,000’s.
The housing market is about to tumble at a rate never seen before along with that unemployment is going to start to rise even faster.
The scary part about this market is their is no really definable bottom - that should concern everyone. But alas Obama would love the market to completely collapse...they have all been part of the plan to create this economic chaos so they could take the election and create this new socialist government.
This ultimately is going to lead to civil war in this country...just crazy to even think we would all have to be talking about this.
Get your money out now before it’s confiscated by Obama is going to be a very hard paradigm to break.
“If these long term projections are met, then it might take anywhere from 5-12 years to recover back to the highs of 2007!”
This is bizarre thinking. Back before Jimmy Carter, the DOW kept to a trading margin of between 500-1000 for decades. Outside of a leveraged economy, it might have risen as high as 2000, with slow and steady growth. But at that point, market forces would have intervened, pushing it back down to the under 800 range.
However, an unnatural leveraged economy evolved apart from the real economy, based on Jimmy Carter’s efforts to manipulate the economy to his advantage. This perverted the market and caused outrageous stock price inflation.
So what should be look for over the next two decades? The value of the DOW over 2500 is unrealistic, and means that it still needs to contract. But by then the contraction will be tamer and take years of adjustment.
An eventual return to a 1000-2000 range will return with the rebuilding of American industry now outsourced. And this will signal the recovery from our economic problems.
Don’t mind the wave count, but do realize that flirting with 2001 lows really illustrates the weakness of ohbamas plan he can’t understand that you can’t spend your way out of debt.
Now, now...lest we forget. Everything BAD that happens is Bush’s fault, that is, something Hussein inherited! Only GOOD things are results of Husseins management!
So, they made retirement nest eggs for themselves and only looked at Social Secuirity as icing on the cake.
Now Social Security is broke and Baby Boomers are starting to retire.
How does the gov't get Boomers not to retire?
Make their retirement nest eggs worthless.
Then ration healthcare so they can't live long enough to collect anyway.