Friday, May 8, 2009
Dow headed back to 11,000
From credit spreads to emerging market currencies many signs are popping up, which suggest that the "cardiac arrest" the global markets experienced after the failure of Lehman last September, has come and gone.
One by one, asset prices are returning to their pre-Lehman levels and there's no reason why stocks should not do the same.
The Dow closed at 11,421 on Friday, September 12. That Sunday Lehman collapsed and by the close of trading on Monday, September 15, the Dow was lower by over 500 points.
With conditions normalizing I see no reason why the Dow cannot regain that 11,400 level.
Enjoy the ride!