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dpdoor (< 20)

Investing or Money Pyramid

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August 09, 2010 – Comments (1)

 

There was a 6500 point drop from the highs of 2007 to the lows of 2009. We had a 50% rebound. It is not uncommon for there to be another drop the same as the first. That would put the dow to 5000.

The dow at 5500 is one of the extreme low numbers I have talked about.

The volume is part of the reason. Less volume means less skimming by the corporations. With out skimming they have to actually pay there directors with real money. This cuts into profits.

The profits would not be there if it were not for investors.

1 Comments – Post Your Own

#1) On August 17, 2010 at 7:17 PM, dpdoor (< 20) wrote:

Other numbers.

10440 puts the dow at a good place. It is 15% below15 pe of next years earnings minus changes in dividend yield. (one of my formulas). I don't see it being worth any more at this time. Once a stock hits it's up side goal buyers are done with it and it drops.

I thought we would hit it last week but today is fine with me (it just crossed over 10440). If I am right we will see another slide starting tomorrow or in a few days. Bounce around 10k, 96k and a target of 8800. ge and bac below 12.5  f in the 8's

Rally to end of November were it will come back around the 10440.

It is hard to imagine this but it is what my math shows. The timing could change but it makes most since to crash now and rally for the November elections.

Two or three years from now I expect lower numbers. Again hard to imagine but 5500 some time in the coming years.

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