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!


googleheim said...

what about all the flip flops on Bizradio ?

they keep saying there is going to be a correction, a pullback and all that ?

What happened to the "genius" Nuriel Roubini and his L shaped no-recovery ?

What about a "W" shaped recovery - such that there will be a recoil then another shot up ?

Why does Wall Street no care about Americans having jobs ?

No jobs is good news for Wall Street !

Why is Obama not helping out small businesses and creating jobs ?

googleheim said...

If there is a quadrillion leveraged fallout from the real estate derivatives and all that compounded with the retraction of create which exponentially raises debt to credit line exposure for consumers as well as banks and businesses ...

then there is a fork in the road here :

a. crediting the banks with deposits from the fed/res/tsy will fill in the holes and expand like foam to help, and things were really not that bad


b. we are not yet there at a point where all problems have been revealed.

Anonymous said...

You were the guy laughing at Peter Schiff on FOX... Ha, you must feel like a jackass now, aye?

googleheim said...

Peter Schiff got hosed, no one here was.

Peter Schiff told everyone to run from the dollar in 2007/2008 and get into foreign stocks.

From 09/2009 to present, the dollar has surged higher than any other time in history.

The Fed increased reserves as a cushion to the world economy, made forex swaps to weaken the dollar while profiting, and sent tons of hidden TARP monies to European and Asian banks that we are not priveleged to know about.

Peter Schiff hit the fan and it stinked ...

mike norman said...


Not as big a jackass as the people who gave Schiff money to manage. Seems he lost most of it, even with that call of his. Maybe you were one??