[TigerLikesRooster]

Ping!

[Doogle]

..how fast can the morons in Congress run?

[txnativegop]

I still think it will get to 5000 before june.

[Man50D]

That depends on how low Obambi and his fellow socialists want to take it with the Cloward-Piven Strategy.

[TigerLikesRooster]

Reformatting:

P/E    S&P 500 Level 
10X      575 
  8X     460 (highest previous trough low)
  7X     400 (average previous trough low)
  6X     350
  5X     300 (lowest previous trough low)

[Red Steel]

With Obama badmouthing capitalism all the time there is no bottom.

[madison10]

6660. or maybe just 666.

(Sort of kidding)

[Viking2002]

(Alex) "Answer: 'How Low Can The Market Go?'"

"Alex, what is, "Two feet lower than whale shit?"

*DING*DING*DING*DING*

[icwhatudo]

[Red Steel]

The most recent bubble peak, 2000, was by far the most extreme we have ever experienced. In 2000,

And the day the activist Clinton government's lawsuit went against Microsoft, signaled the downturn. Janet Reno sent the market spiraling.

[Freedom_Is_Not_Free]

Good post, thanks. I just sleep so well being in all cash since Dec. 2006. I’m just grateful to have had the foresight and good fortune to have missed this train wreck. Many people are just getting killed.

[FlyingEagle]

Well let’s see on the Yahoo Finance Dow chart there is a pre-depression high of 343 in July of 1929. Then in April of 1932 there is a low of 43. So, that is about 12.5% of the pre-depression peak of the Dow index.

The high of ~14,000 in July of 2007 would have to drop down to something like 1750 before April of 2010, to reach the same percentage decline over the same period of time. That means we would have to lose some 5000 points off the current level per today’s close.

Is that level of decline possible/plausible? Well, if major banks such as BAC and C go down, and the major banks are nationalized as the Obama crowd wants to do, and auto industry files for bankruptcy as they should do, and if AIG goes down, and if carbon tax is enacted, and if gasoline taxes go up significantly, etc etc, it is not too hard to imagine such a drop in equity valuations to the 1700 neighborhood by around a year from now.

[Publius]

On June 13, 2011, the Dow Jones Industrial Average will bottom around 400. That’s 400, folks, not 4000.

[jiggyboy]

Folks don’t forget that neither the P nor the E of the P/E ratio are constants. If the price drops by 20% by the next time they announce earnings, and then the earnings are also off by 20%, the P/E ratio stays the same but you’re not any closer to any theoretical bottom or norm.

[Rosemont]

How quickly can ObamaCarter destroy the economy?