Stocks will fall to below 10,000 by the time 1/20/09 arrives

[DainBramaged]

I posted this question as a poll in March.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3008391

31 people beside myself voted and 27 (Including myself) agreed it would fall below 10,000. With all of the economic indicators dropping like flies in a Raid factory, I am positive this will be part of Booshe's legacy, the destruction of the Market.

I know folks didn't think this was very important in March, but now we realize it is.

[Captain Angry]

1. Nah.

The DJIA is an artificial number. It has zero relation to past or future performance since stocks can be (and are) swapped in and out over time.

The number 10,000 for the DJIA is like saying that we're on threat level Orange. What the hell does that *really* mean. Those 30 stocks could all double tomorrow and yet the rest of the market could see no change.

And if a composite index of 30 particular stocks falling another 10% is the destruction of the market, that's not too bad.

Now, if you want to talk about a serious subject, let's talk about real numbers. Unemployment, inflation rate WITH fuel/food, median income, etc.

While the DJIA members have fallen for the most part over the last 8 years, a LOT of other stocks have gone up 10x. They just don't happen to be in the index. If Apple had been a Dow member instead of GM, the index would look way better but the economy would still suck.

[DainBramaged]

3. It is a serious psychological indicator for the non-rich who can't play short

with other people's money.

[Captain Angry]

4. My point is that it IS a psychological thing. It is too easily manipulated.

A little bit of reengineering and the DJIA would go up forever. And Bush would look like a genius on TV.

And if people need the DJIA to fall under 10K to have a serious psychological moment about the economy, they probably need a financial adviser.

[DainBramaged]

5. 90% of the people DO need a financial advisor

I am thrilled you are a financial genius, really I am, and I hope your investment make you one of the heavily taxed as well.

:eyes:

[Captain Angry]

6. I'm not a genius by any stretch.

And I shouldn't have too much to worry on the taxation side until I get a job again. :-)

[aint_no_life_nowhere]

2. Time for McCain to make another speech about privatizing social security

and how he wants Americans to invest their income in private accounts tied to the stock market. That should go over big right now.

[LiberalFighter]

7. DJI opened at 10,581.90 on Jan 20, 2001