Is it time to rein-in expectations regarding the Dow?
Indeed it is, if technical analysis and historical p/e ratios mean anything.
Those with visions of a Dow of 11,000 dancing inside their heads need to take a step back, for context and perspective, on the likelihood of a Dow push to that level in the near future.
The U.S. economy is in recession, it's shedding jobs, downward corporate earnings revisions are likely, and the world's major economic regions are attempting to re-liquefy credit markets and prevent a global financial crisis from further damaging economies, worldwide.
The above, as CNN Talk Show Host Larry King would say, 'ain't exactly signs of prosperity.'
And the Dow has responded: down more than 30% since hitting its all-time high above 14,000 a year ago.
Keep your eye on 8,500 / 8,200 / 8,000
Earlier in this space yours truly noted that the Dow had technical support at the 8,500 to 8,200 levels, and of course psychological support at 8,000.
Indeed it is, if technical analysis and historical p/e ratios mean anything.
Those with visions of a Dow of 11,000 dancing inside their heads need to take a step back, for context and perspective, on the likelihood of a Dow push to that level in the near future.
The U.S. economy is in recession, it's shedding jobs, downward corporate earnings revisions are likely, and the world's major economic regions are attempting to re-liquefy credit markets and prevent a global financial crisis from further damaging economies, worldwide.
The above, as CNN Talk Show Host Larry King would say, 'ain't exactly signs of prosperity.'
And the Dow has responded: down more than 30% since hitting its all-time high above 14,000 a year ago.
Keep your eye on 8,500 / 8,200 / 8,000
Earlier in this space yours truly noted that the Dow had technical support at the 8,500 to 8,200 levels, and of course psychological support at 8,000.
Comfort Zone Investing: The unmighty dollar
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For a quick-read on the U.S. economy, check the price of gasoline
