|
If the economy keeps on tanking and people's confidence in the accuracy of corporate audits remain low, Dow at 5000 is very possible. Check my post re P/E ratios.
I'm of the opinion that we're overdue for a long and sustained bear market. Look on the bright side, though, there are still ways to make money even in a down market. There will always be people that will make money--crisis or not. The real problem is the general economy and how it will impact most Americans--most of us really haven't gone through a crushing and long lasting economic downturn. The last long period began in 1973 and ended in 1981.
But as other posters pointed out, there may be a war soon with Iraq, etc. This may have an upside re the economy. Hmmmm, the first war with Iraq concluded with a recession [early 1990s].
__________________
"If you hate a person, you hate something in him that is part of yourself. What isn't part of ourselves doesn't disturb us." -- Herman Hesse
|