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Should we be buying on this reversal or is the market going lower still?
Best Answer
251 points
MichaelShulman answered 11 months ago …
The market, long term and short term, always follows the financials and this week stands as an excellent example of that -- and so did the November rally after the injection of TARP funds.
I believe the market will continue to slide to Dow 7,500, kicking off a battle royal between the bulls and bears, with the bears eventually prevailing and sending the Dow down toward the 6,000 level.
The only thing that could head this off will be a hitherto unmentioned gigantic rescue package for the banks. That is simply not in the offing for the first half of this year when you consider that the second part of the TARP ($350 billion) is not nearly enough money, and we can totally rely on Congress to misdirect a good deal of that money to absurd programs that will do nothing to fix the fundamental problems with the financial system.
Answers
2222 points
readytoretire answered 11 months ago …
I don't see any stimulus to get the market headed back up right now. I am afraid it will at best drift sideways for a while. With earnings not going to give much if any good news, and Obama's plan not getting any reaction, we are left with no quick way out.
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3963 points
MNSL answered 11 months ago …
I do no think that we can expect super bull markets for oil, gold, commodities, stocks and other assets now. Gold will have some support level in the short run. In the medium to long run gold prices will come down sharply. We will have bond, gold, commercial property, technology, health, insurance, leasing and credit card burst during next 03 years.
Only selected sectors will have bullish trend in the next 18 months. I agree with analysts and investors who predict sector based bull markets in the next 05 years. Some sectors will collapse except few strong companies with demand for their products.
This is the time to invest in next rotating sectors, sectors with strong rally in the future and sectors which are going to outperform market in the next 06 months, next 18 months and next decade. It is time to avoid most vulnerable sectors before it is too late. During May 2009 we will be able to see clear direction of some promising sectors. .
