The thing is that there are a LOT of speculators that are still sitting on the sidelines because they are waiting for a major correction before jumping in as bargain hunters. Indeed, if DJIA drops under 14,000, the bargain hunters will snap up stocks so quick that we may never see the DJIA drop under 12,000.
Good question.
No one knows. Even the experts. Why?
The market has been so manipulated, and so pumped up in recent years, that no one really knows what is the real value of anything in stocks.
If we had a real free market, it would find its own low. But, years of this QE garbage has thrown us down the rabbit hole.
The stock market has been following Hillary Clinton's approval numbers down (Wall Street is Clinton's biggest donor -- by far).
How far can Hillary Clinton's approval fall?
The Dow dropped below 8,000 in 2008. Where were the speculators waiting on the sidelines to jump back in then?
Just saying that your scenario isn’t a given.