Saturday, May 12, 2007

Dow to fall 50%?

Read The Mogambo Guru's (Richard Daughty - pictured left) latest rave. His insane-cackling style manages to make the news seem funny. I'll put it baldly: Federal Reserve credit rose $16 bn last month, and David Tice at Prudent Bear is predicting a Dow slide before the end of the year, ultimately heading for a total drop of over 50%.

In an interview here, David says he'd thought the bear market started in 2001 or 2002. Once again, the analysis is that it's a bear market masked by inflation.

2 comments:

  1. Anonymous19 June 2007 at 23:12

    I will bet your entire net worth the dow does not fall back to 6750. it would have a 7 multiple with 5-6% int rates not in anybody's lifetime

    ReplyDelete
  2. Sackerson20 June 2007 at 08:54

    1. I'm a bear, so I'm looking to bet on sure things!

    2. At one point, for a short time, the FTSE 100 dropped almost exactly 50% from its 2000 peak. It can happen.

    ReplyDelete

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