The Dow is down near 6,500. Only 1,500 points to go. At least, that was our guess a few years ago. We figured that the Dow would have to go to 5,000 in order to get down to real bottom prices. Will the bear market finally be over then? Nope. That’s just where you can begin looking for a bottom. Remember, markets tend to overshoot.
So far, the Dow has wiped out 43 years of gains. Adjusted for inflation, it was at this level back when the Beach Boys and the Beatles were just starting out. Actually, we don’t remember when the Beach Boys and the Beatles began…but it must have been in the md-’60s.
That's not what the stock pickers are saying on TV. For weeks, after every new low, they tell us that we have reached the bottom and happier days are just around the corner. Well, hold on tight because, when we do reach bottom, there might not be a bounce back but just a big thud.
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