My Option On Dow 6,000

Quote from landman:

I have been telling friends for months to expect the Dow to hit between 6,000 and 6,500. I was surprised to read (today) that others share that same view.

For me, this notion is based on more than a feeling. I determined that the price of stocks were inflated and would need to correct themselves to levels near the beginning of when this bubble began--2000 to 2001. When I saw the availability of cheap money for mortgages hit the scene between 2000 and 2001 I always held the Dow's range at that time in my mind as what the "true" value of the market was--6,000 to 6,500.

In light of home prices retreating to more reasonable levels and the exposing of numerous financial scandals, I am more confident that the artificial price of stocks will return to those pre-bubble levels seen in 2000 and 2001.

Too me, the inflation of stock prices and home values coupled with the lowering of interest rates made the problem worse, given that inflation is designed to bring spending under control. When the cost of credit continued to get cheaper and cheaper (through lowered interest rates), it makes that impossible.

This is just my opinion.
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What is the attraction to the DOW... seems like everyone is only interested in what the DOW is doing.

Who cares. The DOW almost feels dated...

There are more interesting things to tell the neighbour about when you're both out shoveling snow.


B
 
Quote from longhi18:

Post count shows intelligence? By your remarks it shows unintelligence but what do I know I only have a few posts.

We are experiencing a global fundamental disruption of the financial industry. Also, an all out nuclear war would certainly put us below 6000.
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In case of a nuclear war, I mean major one, something like usa vs russia.... there will not be dow index, no stock exchange and no internet... those cans of tuna you bought a while ago might save your life...

In case of some small nuclear war eg. India vs pakistan, dow would be a great buying opportunity, India should be bought and pakistan shorted.
 
Quote from Bootsie:

What is the attraction to the DOW... seems like everyone is only interested in what the DOW is doing.

Who cares. The DOW almost feels dated...
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The dated part has a lot to do with it. The media won't let it die.
 
Quote from bwolinsky:

Dow 7000 won't hit, so I'd have to say DOW 6000 is unlikely. DOW 6000 requires fundamental disruption of economic activities, up to and including both oil embargos and all out nuclear war. Have fun Mr 7 post since 2005.
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Nice call dood
 
Quote from bwolinsky:

Dow 7000 won't hit, so I'd have to say DOW 6000 is unlikely. DOW 6000 requires fundamental disruption of economic activities, up to and including both oil embargos and all out nuclear war. Have fun Mr 7 post since 2005.
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Right....
 
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