The Dow Jones Industrial Average will lose about half of its value over the next couple of years as it follows a Nikkei-like pattern of several sharp rallies in an overall decline, according to Charles Nenner, founder and president of Charles Nenner research.
Stocks are currently in a bear-market rally, and looking at charts and past trends, unemployment and leading indicators suggest the Dow will drop to 5,000 in the next two to two-and-a-half years, Nenner told CNBC in an e-mail.
Deflation will arrive, along with a sharp double-dip recession, pushing the Dow lower, although, like the Japanese market, stocks will see several jumps of 30 percent to 40 percent, he said.
More Here..Texas (Kitco News) -- U.S. Rep. Ron Paul , R-Tex., plans to introduce a new bill next year that will allow for an audit of US gold reserves, he told Kitco News in an exclusive interview.
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S&P downgrades Irish government debt rating
ReplyDeleteNEW YORK (AP) -- Standard & Poor's Ratings Services on Tuesday downgraded Irish government bonds by one notch, citing the high costs of supporting the nation's troubled financial system.
The ratings agency said the rising costs will "further weaken the government's fiscal flexibility over the medium term." Analyst Trevor Cullinan said a recent injection of new funds into Anglo Irish Bank Corp. Ltd. helped lift projections that the Republic of Ireland's net general government debt will rise to near 113 percent of the nation's gross domestic product in 2012. That's more than one-and-a-half times the median for the average of countries in the European Union, and well above projections for Belgium and Spain, S&P said.
I agree with Bob Pretcher the DOW will go triple digits within our lifetime.
ReplyDeleteOne time I opened my mouth in front of my sheeple friends and said the DOW will go below 4K, nothing but laughter and jokes.
NEW YORK — The Hindenburg Omen reared its ugly head late last week, signaling more doom and gloom as stocks plod along amid the dog days of summer.
ReplyDeleteThe Omen, a technical indicator that uses a plethora of data to foreshadow a stock-market crash, was tripped again Friday, marking the second time since Aug. 12 it has occurred. (It also came close on Thursday, but one of its criteria fell short.) And the latest trigger has prompted the Omen's creator, Jim Miekka, to exit the market.
"I'm taking it seriously, and I'm fully out of the market now," Miekka, a mathematician, said in a telephone interview from his home in Surry, Maine. "I would've probably stayed in until the beginning of September" depending on how the indicators varied. "That was my basic plan, until the Hindenburg came along."
The Omen has been behind every market crash since 1987, but significant market declines have followed only 25 percent of the time. So there's a high likelihood the Omen could be nothing more than a false signal.
But that isn't stopping Miekka from taking any chances, especially as September, typically the market's worst-performing month, sits only one week away.
Damn, Yahoo pulled this story from its Headlines almost as fast as it was posted. I don't doubt a fall in the market to under 5000, but my question is this, if everytime the market starts a large downward plunge the government shuts down trading, will we ever see another crash? So much for a "Free Market" society!
The government can keep it propped up for perpetuity. Without the government meddling, and assuming Wall street doesn't just outright lie about the numbers (how would you be able to stop them exactly?), the Dow should probably be at 6000 right now.
ReplyDelete8:07pm I'm actually very spooked...In this stupid matrix world where trades are done by computers all it takes is one bad trade to wrong and they'll all dump at the same time causing a chain reaction.
ReplyDeleteWe are living in a weirrrrrrrd Matrix...Where things that don't make sense is the rule of law and common sense is ignored.
I hear the rumbling of riots and food fears...I hear the slow simmering anger of millions...What would have been laughed at is now a reality...We Americans have ignored all the shit going on in Europe as they're collapsing or rioting...Yet we who actually have LESS safety nets talk like that wouldn't happen here.
We are in for a very bad surprise...Best luck to all in these troubling times.
Revolution is sometimes necessary.
ReplyDelete