Has US Stock Market Hit the Bottom ??

Question

Some believe that the bottom will be around 10000 (Dow Jones).

According to one financial analyst, “The market is as oversold as it has been at any time in the last 10 years. A bounce is likely and it could be of significant magnitude.Following the bounce a retest of the current low is likely.”

What do you say ?

Answer 1

wait a little longer where almost there

Answer 2

1. Market Analysts are tea leaf readers, they don't know jack.

2. The bottom of the USA market can be hit over and over again in the next 10 years, its going to be a bumpy ride, thanks to Bush.

3. Stocks have no real value, nor the companies who sell them to the bidders. It's mainly hype. If everybody is hyped about the economy, they go up, if not they go down.

Answer 3

It is projected that the credit market losses will total $1 trillion.  Only $320 billion has been written off so far - only 1/3 of the total.  So, we have alot more hurt to do.  Starbucks is losing, as are restaurants in general.  GM has said they have enough money to see them thru 2008.  After that ???  The clothing market is hurting.  Movies have fewer customers.  People are driving less.  Some gas stations have stopped accepting credit cards - due to the fees.  People are continuing to get behind in mortgage and credit card payments.  People are hurting.  The rest of 2008 will be rough.  And, the first half of 2009.  In about a year, things MIGHT start to get a little better.  Save whatever you can.  Good luck.  Jack

Answer 4

The past 10 years is not a terribly significant period on which to gage whether a market is oversold. Although the analyst just have forgotten the 2000-2002 sell off which many issues have yet to recover from.  Perhaps he was still in grade school then.  There have been quite a few instances where judging by the past, we are just getting started.  1973-1974 particularly comes to mind.  For two solid years the market kept dropping.  It lost over 50% of its value during that time.  And let us not forget 1929-1933.  Yes, there might be a bounce.  There generally are during prolonged bear markets.  But then prices continue on their downward spiral.

Answer 5

it's a reasonable assessment of the current situation.  however, i don't know if anyone can point to an exact number on the dow.  generally, round numbers (i.e. 10000, 9000, 8000) have more to do with investor psychology than any resistence levels based on technical or fundamental analysis.