Dow < 1000?

[nitro]

http://www.cnbc.com/id/38088826/page/2/

Precter has been predicting the end of the world for years. Book value on the DOW is about 1400 ish?

 

[DDK89429]

The government's plunge protection team will never allow it.

 

[jasonc]

almost zero chance of that happening on a fundamental basis and probably zero based on government intervention that would stop that.

 

[Petsamo]

Quote from DDK89429:

The government's plunge protection team will never allow it.

The PPT is AWOL.

 

[Random.Capital]

Quote from nitro:

Precter has been predicting the end of the world for years. Book value on the DOW is about 1400 ish?

This sounds suspiciously close to simply taking the Nikkei top-to-bottom and applying it to a 14k Dow and adding 20 years of low inflation.

And IMO it's always useful to consider what has happened to Japan -- a 80% drop in market value does not necessarily lead to the end of the world.

 

[bullmarket79]

corps do have 2 trillion sitting in banks,,doesnt sound like the end of the world to me

 

[jeb9999]

Quote from Random.Capital:

This sounds suspiciously close to simply taking the Nikkei top-to-bottom and applying it to a 14k Dow and adding 20 years of low inflation.

And IMO it's always useful to consider what has happened to Japan -- a 80% drop in market value does not necessarily lead to the end of the world.

You might want to comsider that the Nikkei has not yet ended its multi-decade bear market. The Nikkei could go down to the 4000 or 2000 levels of the 1970's.

 

[jeb9999]

Quote from bullmarket79:

corps do have 2 trillion sitting in banks,,doesnt sound like the end of the world to me

According to this site http://www.tradersnarrative.com/is-the-massive-corporate-cash-stash-bullish-or-bearish-4304.html
US non-financial companies have cash and liquid assets totalling $1.84 billion and that is only 25% of interest paying debt. In a weak economy it sounds like too much leverage.

 

[jeb9999]

Quote from jeb9999:

According to this site http://www.tradersnarrative.com/is-the-massive-corporate-cash-stash-bullish-or-bearish-4304.html
US non-financial companies have cash and liquid assets totalling $1.84 billion and that is only 25% of interest paying debt. In a weak economy it sounds like too much leverage.

Error correction - That should be "$1.84 tillion" not "$1.84 billion".

 

[milktruck]

Quote from jeb9999:

Error correction - That should be "$1.84 tillion" not "$1.84 billion".

edit fail! haha sorry man had to do it.

Its thoughts like the ones on this thread that make me really uncertain when to get long again.

Im gonna liquidate some puts in the 950-850 range, then maybe sell puts with strikes I like and put the procedes into PMs. When it feels like a firesale I may start getting in .