Does anyone think we'll retest Oct. / Nov. lows again?
Answers
678 points
BoxCar answered one year ago …
If GM goes bankrupt I'd say at least one more time before Obama takes office
Stk Mkt is in oscillation between 9500 and 7500 ledges of [Vol.x Price] and
Feigenbaums number 4.692+ from Chaos Theory shows roughly 3 events/tests.
989 points
rvilmur answered one year ago …
I think that all the bad news about the economy and shaky stocks is not out yet and a retest of the Oct./Nov. lows will occur in January. Obama's grandiose spending plans will take a lot of time to have a real effect on the economy and the creation of new jobs. No more government money should be given away; but spent only on capital projects that will create jobs.
My bottom line is that it is too early to try to go long on stocks.
731 points
thinker70 answered one year ago …
Only after a strong rally that will fool a lot of people into believing the economic/financial problems have been resolved, maybe after the automotive industry bailout is finalized the pent up relief will trigger a rally!!.
There will be new crisis situations as the deleveraging continues as retailers go bankrupt jeoparidizing commercial real estate and with increasing unemployment adding to the retailers woes the next domino to fall will probably be credit card defaults rising, easily triggering some new BLOWUP, maybe even more bank failures! Under those circumstances another round of panic selling could indeed retest the recent lows!
In rvilmur's response he said; "No more government money should be given away" and while I understand what he means, the simple truth is that it is not government money that is being given away, it is newly created fiat I.O.U.'s that the TAXPAYER is liable for through taxes should the companies receiving the bailouts still not be able to turn a profit and pay back the loans!
