Will the Dow Bottom at 10,500 (or lower) before any real change in the economy occurs?

Question

Will the Dow Bottom at 10,500 (or lower) before any real change in the economy occurs?

Answer 1

Alby? Free markets?  On what planet?  You have no idea how many hundreds of billions in borrowed funds the US govt already put into the markets to prop them up.  It's smoke and mirrors.  It's like a game at the carnival.

Dow will be below 10,000 before 12/31.  At some point something will need to be done to the US $.    70% of spending in the US is consumer driven.  How do you think the x-mas season is going to be this year for retailers?

I personally don't believe this to be a business cycle.  I think what we are witnessing is an economic shift.  And we're not near bottom.

A better investment is to buy non-perishables before price hikes work their way through the system.    At this point any goods you purchase are just about guaranteed to give you the equivalent of 10% APR.  Most meats, dairy, grains will be going up more then 10% over the next year.

Answer 2

It is entirely possible. Note that it is not unusual for the Dow to swing 200+ points in a day.

If the Dow does drop into the 4 digits, then you'll see an aggravated level of panic, but this is mostly psychological. Same idea with pricing something at $xx.99.

Answer 3

Get those numbers out of your head... DOW 10,500 / Dow 250, it doesn't matter. The bloodletting will stop when it stops. And only free markets can determine when that will occur. Not statistical analysts of composite indexes.

When the buyers start to outnumber the sellers, then change will have begun.