Technical Analysis suggests now is a time to buy. We're at a major support level established back in 2002 but it's fair to argue we could work off all the gains that were made from the debt bubble, with a target of somewhere between 400-500.
S&P has formed an "M" pattern, it will go much lower, if I was to guess 250 to 300 area. The USA does not make anything except farm equipment and food, companies are laying off in the thousands, when unemployment checks end, people will be cashing in on their retirement accounts which will drive the markets even lower late next year. The Dow will seek 2400 to 2800 where it will base. Housing will tumble a great deal more, I would not even consider building a house for 3-4 years, I have placed a hold on building my home till then. Many more companies will be going out of business. House values will drop at least 50% USA Today wrote "The average American household is now buried under mortgage debt of $84,911, car and tuition loans of $14,414, home equity loans of $10,062 and credit card debt of $8,565 â totaling, and outstanding debt of $117,952. The worst is that, according to Federal Reserve statistics, the average household savings this year will be only $392." Unemployment is at 14 year highs and growing, you have no job, you will not be buying anything except food. It is not a matter of if the banks will fail, it is a matter of when. I think any rally is to be sold. Handle
=================== They said the same on NOV 12; counter trends[ aka bear rally] maY finally test OCT or NOV high. Due to all the fundamentals that are against a bull market[& i like a good bull market]; probably take out 80% from peak to valley in QQQQ, or more- it did before. SPY may do the same; even if it retests OCT highs.......................................... Not a prediction
Isn't that a rather simplistic assertion on your part . . . with total disregard how the "debt bubble" effects ( or does not effect ) specific industries? Sounds like a very dangerous "blanket" assumption being made.