Posted on 03/27/2009 1:46:18 PM PDT by Petronski
The chief executive of financial bookmaker IG Group has called the recent stock market gains a "false rally" and predicted the FTSE 100 and Dow Jones will tumble almost 30pc.
Tim Howkins said he expects there to be further gloomy economic news around the world, causing the blue-chip index to fall to as low as 2,800 and Wall Street's leading index to crash to 5,700. The FTSE 100 is now at 3898.8 and the Dow Jones is at 7810.2
"Those falls would be pretty apocalyptic from where the markets are now," he said. "But the world is getting worse rather than better. There is still a lot of bad news to come from the global economy.
[snip]
Mr Howkins' comments are also partly based on the trading patterns of IG's 50,000 clients.
(Excerpt) Read more at telegraph.co.uk ...
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At the risk of being called a "doomsayer", he is correct about the false rally, because none of the basics have changed.
It is like a nightmare, you wake up and the socialists are still in control of the Whitey House and Congress.
The company my wife works for makes seals for medical, food and industrial uses.
They had 125 employees then down to 70 but business has turned around recently. They plan to rehire 25 people in the next few weeks.
Most companies have worked their inventories down to extra low levels the last 6 months or so. I believe I read the inventory levels
are at record lows but most companies need to replenish their low stocks soon.
I see a turn around in the economy the next few quarters.
Does that mean that the gains I have made are "false profits"?
I agree—a suckers rally.
And Hussein will be smiling all the way to the declaration of martial law. He loves it when a plan comes together.
Have you cashed in those winning positions?
I bet someone a month or so ago when it dropped under 7000 that it would drop below 6000 by the end of the year. Anti-business government policies do not promote growth. Punishing success and subsidizing failure gets you less of the former, more of the latter.
I bet someone a month or so ago when it dropped under 7000 that it would drop below 6000 by the end of the year. Anti-business government policies do not promote growth. Punishing success and subsidizing failure gets you less of the former, more of the latter.
I always use trailing stops.
Plus, there are quite a few stocks that are in up trends, even when the market goes down.
As is normal in market and business cycles, some parts of the economy are closer to recovery than others.
Exactly what I’m afraid of. This is one puppet who’s being guided to destroying America from the inside. And when it’s over it won’t make a difference if they or we burn the Whitehouse as it won’t mean a thing anymore.
I predicted 6000 as the bottom last month and am sticking to it. This is absolutely a sucker rally that ignores impending trillions extracted from the economy for decades.
Soros is just waiting to reset his naked shorts. Citi and BoA will be hammered (how the hell could Citi be making money in Jan-Feb? Well, it froze foreclosures for those two months, so those losses were not taken then).
I’m hearing stories like that all over; some improvement
I see that traffic is getting a bit worse in CA; always a sign of more workers about.
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