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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (88136)	6/20/2009 7:38:17 AM
From: Gary105	Read Replies (1) \| Respond to of 94695

Historically quantitative easing does cause inflation. But personally I think the next step is anemic recovery followed by economic downturn and I think this will be worldwide (worldwide "w" recovery). If its worldwide, then dollar may not tank - it actually strengthened during recent downturn. But it will result in continued high unemployment, lack of pricing power and low to negative earnings growth - bad for stocks (dividends are actually being cut, dividends and earnings growth is a key part of stock valuation). One scenario has stocks crashing later this year. I think 29-32 scenario is more likely for stocks with stairsteps down over the next few years ultimately bottoming around 2550 filling the gap created during first gulf war. BWDIK