"ALL CAPS IN DEFENSE OF LIBERTY IS NO VICE."

Friday, May 18, 2012

WILL THE DJIA GO BELOW 11,000 BEFORE THE ELECTION?

YES. MY GUESS IS PROBABLY AROUND 10,800.

DESPITE THE COMING INEVITABLE EURO/EUSSR MELTDOWN AND THE ENSUING FLIGHT TO SAFETY.

ASIAN STOCK MARKETS ARE DOWN NEARLY 20% ON THE YEAR.

AND THE U.S. ECONOMY IS JUST VERY WEAK:
  • DEMAND IS WEAK; 
  • UNEMPLOYMENT IS HIGH AND CREEPING UP; 
  • GAS WON'T GET MUCH CHEAPER;
  • THE HOUSING MARKET SUCKS;
  • STUDENT LOAN DEBT IS A BUBBLE ABOUT TO BURST;
  • EXPORTS ARE GOING TO DECLINE SHARPLY;
  • AND SO ON.
BUT AS IT BECOMES APPARENT THAT ROMNEY IS GOING TO SMASH OBAMA - AROUND LABOR DAY, THE MARKETS WILL BOUNCE BACK TO 11,500.

IF OBAMA GETS DESPERATE AND ATTACKS IRAN TO TRY TO GET RE-ELECTED THEN ALL BETS ARE OFF.

THE MARKET COULD GO AS LOW AS 9000. AND THEN BOUNCE BACK WHEN ROMNEY DEFEATS OBAMA.

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