Dow drops to 5 year low
 

Dow drops to 5 year low. I have felt it would probably go into the 7000's before coming back. Hope it doesn't go too much lower.

Re: Dow drops to 5 year low
 

I'm guessing 7500 before it starts back up. Hope it doesn't go any lower anyways....

Re: Dow drops to 5 year low
 

Yikes...I think I just threw up a little bit ;-------(

Re: Dow drops to 5 year low
 

You don't say where you got your figure--but 7500 is what I am reading by the "realist" economists.

Re: Dow drops to 5 year low
 

I predict that it will go below 6000 before it rebounds.

This may take a while.

Re: Dow drops to 5 year low
 

I feel so blessed to have invested so heavily in my church. My treasures are laid up in heaven. I havn't lost a dime yet.

Re: Dow drops to 5 year low
 

I pulled it out of the sky to be honest. Just a gut feeling from watching the dow for years. I hope I am right as we are at an 11 year low now, just a shade above 7500.

Re: Dow drops to 5 year low
 

5600 +/- 200 points. Not being pessimistic, just trying to be a realist. The markets drop is not what we have to worry about, it's the Government meddling in the Banks, the Auto Industry, etc., etc., etc.

Some history I have read posits the idea that the Stock Market collapse of '29' did not cause the Great Depression it was Governmental intervention that caused it and kept it going longer than it should have.

Best to be prepared for the worst.

Re: Dow drops to 5 year low
 

I am very concerned about the government intervention. And with the lack of privacy because of the internet etc. In the wrong hands, things could be horrible.

Re: Dow drops to 5 year low
 

In 2000 (the last resession) the NYSE lost 43% of its value and the NASDAQ lost around 66% of its value and everyone seems to agree that this is going to be a harder recession.

the NYSE high is somewhere just over 14,000 so we are nearing that 50% mark now.

It should also be noted that the stock market tends to be a leading indicator. Meaning it will drop before the full effect of the recession hits and will also rebound before the rebound takes full effect in the wider economy.

I do think we are getting close to the bottom because most of the losses have been factored in for the financial sector and the housing sector. However, the retail season is going to be tuff on retailers and there is still some room on the down side for retail stocks.