A lousy economy, but not a disaster for everyone. A slow, erratic , and long recovery of about 4 to 7 years for the US economy.
A disaster for about 1/3 of the young people in the job market, similar to Europe's lost generation.
No break up of the US, in fact, the extremes of the Clenet predictions won't occur.
Prechter is forecasting the possibility of a large market drop, which is reasonable, also any action with Iran could also cause this. I haven't followed his social or political observations for a while.
Another 30% market drop would not be the end of the world, but Dow under 1000 is unlikely - the math doesn't work.
nytimes.com
Look at Dow stock Intel - a $20 stock with $3 cash, 3% dividend and it aint going away. Walt Disney, McDonalds, Boeing, Cisco, Verizon, 3M, Johnson & Johnson, Pfizer, JPMorgan... Dow under 1000 means at least 3 have to go BK....which ones ?
General Motors is not in the Dow anymore. Most of the damage is in the past.
Two page list of DJIA stocks -
money.cnn.com
>>>I think Prechter may be in a good position to call the bottom. But we could come out of bottom into a multi-year trading range, like the 1960s.
A fun view - Possible government action -
youtube.com |
