Friday, June 03, 2011
Probably should have Publicly posted this a while ago
I've been saying it since the end of January or beginning of February, but if I haven't told you personally, you probably won't believe me when the 'I told you so' moment comes if I don't make it clear now. As I said earlier in the year, and I have stuck to my guns on this, the Dow Jones Industrial Average will hit 11,000 again before it reaches 13,000. Personally, I think that the market's natural level is about 10,500, meaning that the market needs to fall 20% in order to truly normalize. Coincidentally, the definition of a bear market is a market drop of 20% or more. This means that the government's quantitative easing program has effectively erased or inflated away a bear market. Since QE2 ends this month, expect market volitility (and when I say volitility, I mean both up and down, unlike analysts in the media), but a general downward trend towards the 10,500 mark. Outside forces may prevent a complete drop to 10,500, but I'm still calling out the 11,000 mark.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment