Over the summer, the Dow Jones
is going to look good and the
underlying market is going to
collapse. There will be a push
by institutional investors to
get small investors to buy
shares in the DOW 30. Look for
lots of rah rah to allow the
institutional investors to
abandon the Dow Jones without
losing much money. Meanwhile,
m
more

Over the summer, the Dow Jones
is going to look good and the
underlying market is going to
collapse. There will be a push
by institutional investors to
get small investors to buy
shares in the DOW 30. Look for
lots of rah rah to allow the
institutional investors to
abandon the Dow Jones without
losing much money. Meanwhile,
more hedge and derivative
funds will collapse. The
investors in these funds are
the mainline 401K and
institutional organizations.
They will scramble to move to
'safe' investments like bonds
and overseas securities. The
steep decline in the value of
the dollar relative to other
currencies will force overseas
investors to liquidate their
dollar holdings for those with
a more stable valuation curve
over time. Increasing consumer
costs will increase the
foreclosure and debt defaults,
forcing the market into a
correction at the end of the
third quarter. Expect a large
drop in value during the
third/fourth quarter. This
drop will come just before or
right after a terrorist action
in the United States or
outbreak of hostilities in the
Middle East. By year end, the
market will suffer a loss and
the dollar should be at all
time lows against all major
currencies.

Category News & Politics

Tags economic, crash, in, fall, 2007