DOW 7350 non-cattle

[jason]

Where do think the bottom is?  My prediction is 6000.  I think the biggest factor in turning this thing around is when the layoffs slow and we see positive employment #s.

 

[klintdog]

I think we're going to see it hover around 6500 for a while, but I don't know if we'll actually break 6,000. The real test will be when the next quarter earning estimates are released and how the markets will react.

 

[justintime]

This recession thing is becoming a bigger mess than i anticipated . An Aussie cattleman was telling me that the Australian dollar has devalued 40% in 9 months.Unemployment is sky rocketing, foreclosures are following close behind.Everyone is worried they will not have a job, so no one is buying anything but essentials .... which only make the recession worse. They have fires flaring up in the south of the country and record flooding in the north. He says it is almost a total impossibility to get a bank loan in Australia unless you can prove that you have enough money invested that can be used to cover the loan if it goes into arrears.

I have to take back a lot of things I have thought about the Germans and their form of democracy. Personally, i think their idea of an auto bail out makes good sense. The German government is giving every person $6000 to replace the car they are driving That sounds like a plan that stimulates the car plants, creates employment, and revitalizes the economy. Sounds to me that this makes more sense than handing a open ended cheque to a group who have allowed the unions to run them into the ground. I have less than zero sympathy for the Big three. They squandered record profits of even two and three years ago. Did they offer any of us any money back when we were struggling to make ends meet, and make the payments?

I am concerned as to how much control China will have over many countries when this economic recession turns around. China is buying much of this debt and they will be the silent absentee owners of a considerable amount of our countries. This may get dirty yet! Even though I have these fears, I am still hoping that some clear thinking prevails. Has common sense actually died from our society?

 

[jason]

Has common sense actually died from our society?

I don't know about our society as whole, but the Gov't sure has lost it.

 

[jason]

I am always afraid I will look back and say "wow, the dow was as 7000 and I didn't invest".  One of those shoulda, coulda, woulda things. 


I do agree it will probably get worse, before it gets better.

 

[klintdog]

I actually reallocated all of my 401K on Friday. I had been on track as a moderate conservative investor. I said the hell with it and looked at it in perspective - I'm 28, and with what I have in my 401K right now, I spend more than that in a month on livestock feed. I figured "what the heck, it's at 7,000, it can't go much lower", so I switched everything over to moderate agressive and more stock based. I still think that now's the time to buy if you can.