"market correction, as much as 90%"

"Billionaires Dumping Stocks, Economist Knows Why
..
Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate.
..
Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too.
..
billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.
...
It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.
..."
http://www.moneynews.com/MKTNews/bi...stock/2012/08/29/id/450265?PROMO_CODE=1393F-1

 

I swear thats a reworded article from a while back

 

Yes, the same misleading article. Gotta keep the doomers on the path!

http://www.elitetrader.com/vb/showthread.php?threadid=260308

 

I really doubt that a correction of 90% is likely to happen. Even during the crash we saw the DOW bottom out around 6k. It’s not unfeasible that we’d go back that low but I think we’d need some poor economic data to push it that way.

 

If we have a 90% correction, "Katie bar the door".

 

90% is a stretch. 40% - 50% will surely happen.

 

MoneyNews is like NewsMax; they buy promotional space and publish what looks like real articles. Similar to advertorials in magazines, only slicker because most people believe anything they read on the internet.

 

I agree with this. The reason the market has made a new high while unemployment is still not recovered, nor the rest of our economy, is simply because so much more money has been added to the pot. So many people who lost money in their 401K's in 2008 decided to take up trading and they added thousands of additional dollars to the money pool in addition to their regular contributions. This means to match the Dow's 6K low would require a Much Greater panic, and proportionately, a much greater withdraw of people from the market than we saw in 2008. I think a low of 11K by the middle of 2015 is much more likely than a 90% drop.

 

You sound like the typical noob that doesn't seem to understand that MONETARY policy trumps all.... and that the high correlation that you believe exists between the stock market and the economy, is relatively non-existent.

You also don't seem to understand that there was $650 BILLION in Corporate stock buy-backs last year, and that the "retail" investor is out of the market. He hasn't been around since the "Flash Crash" of May of 2010.

 

Ah, the voice of reason. I was sweating for a sec there...