Friday, July 24, 2009

SOS Depression 2.0


Well, the DJIA has went up to about 9000 points, fantastic, the worst is over, that is what the majority said.


Are they right this time, yes there are, perhaps for 3 to 6 months, after that, what? Don't forget, in 1929 Great Depression, it took about 3 years to bottom from the peak, i.e. drop about 89 percent.


Now, it went down from say 14,000 to 7,000, then up again to about 9,000 or give it 10,000, it is down only about 28 per cent. So, if Prechter is right, this is only one their from the peak. The bottom would be around 2000 points.


So, as usual, I am wrong, almost for a year now.

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