Two days ago I posted an entry with my February 2009 review and commented about the buzz about "The Lost Decade". Well, guess what? Dow just dropped to level not since 1997.
If this is truely the excess built since the early 90s as I mentioned in the last entry, then today's closing point is nothing since we still have five more years to go.
Other than trimming the fat the market also tends to overshoot itself, whether on its way up or on its way down. With that in mind, Dow was about 3200 points and S&P was 410 points by end of 92. That means roughly another 55% and 40% to drop from today's level.
Interestingly, on Kudlow's show today someone said the opposite. He believes in a few days S&P will hit its lowest point of the year. I sure hope he's right.
More than the lost decade - Dow 3200, S&P 410
March 3rd, 2009 at 01:39 am
March 3rd, 2009 at 01:45 am 1236044704
March 3rd, 2009 at 01:58 am 1236045525