Paul,
Abby Cohen may have stabilized the market in the short run, and the DOW may infact labour to regain the lost ground during the last couple of weeks, but what happens after that?
Upon Abby's advice the naive investor will scrounge around for every dollar from the piggy bank, line of credits, credit cards, etc. etc. and invest. So what happens ? Dow goes back to 9300. But there is no one left to buy! Shades of 1929 ? Not so says Mr. Greenspan! - The government of US will never allow a repeat of 1929!
The government will flood the market with liquidity. YES, YES! Bonds will soar, interest rates will sink, and Yes GOLD will rise.
BTW, Ralph Acampora says Dow will decline by 20%. If there is an inverse relationship with GOLD, then will POG rise by 20%? (or to $350).
And yes, I do feel Abby is full of hot air. Just my thoughts.
Regards, Lalit Jain |
