Nice thought but I think 11/18/2008 is the day to recon with!... Monday will be capitulation day and Tuesday will be a so so day... Then Wednesday next week we should see the "final" spike down.
You know Art Cashin who has been very correct in his analysis of the market on CNBC. Has put it this way. If we hold the lows we will be up 35 to 40% in a few months.
Yes if we break down and have a collapse here, will go into to the tank.
I'm not in that camp.
I've said this before and I will say it again. The stock market is the only place you can put your money and get fabulously rich. Bonds, T bills, and money markets will never do that. Bill Gates, Warren Buffet, Larry Elison, and the Wal-mart family aka Sam Waltons heirs can attest to this.
Individual stocks are the only mechanism for that type of wealth building. These stocks are best purchased in times of maximum meltdown. Like today.
GM and Ford have huge retirement liabilities, they are permanently impaired. People have been saying for years, when the Dow was at 14,000 that GM could fail.
So geez big surprise, that the US automakers which didn't make a single Hybrid until after oil peaked are in trouble.
Toyota and Honda, were making Hybrids long in advance of the spike in oil.
Ford has the lowest reliability rating of all the manufacturers. No wonder they are in trouble.
The US automakers are in the tank, for decades, but that was know around Dow 14,000.
Consumers are not spending!! These companies are all based on making money. What happens when revenue falls over 10% what are your profits going to look like if you have to slash prices to clear inventory??? Where are we truly heading??
I hear you, but I've been to the mall, Wal-Mart, and many other stores. People are still in them.
So yes we have a tough environment, but no it isn't the end of the world.
The ride up will be breath taking. Will close slightly negative on the Dow maybe 30 points down. Tomorrow will role up 7% or more.
And over the coming weeks, will go up over 25%.
At that point in time the market will close to fair value, and the price of GE will touch $20. You'll have to make a decision then as to the how many companies are overvalued.
Right now your only decision is how much of the great companies and which ones do you buy.
I'm buying GE, BNI, and BW.