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November 7, 2008
A Major Dow Bottom Next Week?
While October 2008 will be remembered as one of the most tumultuous months in financial market history, November 2008 is shaping up to be the month when policy makers, analysts, and investors begin to grasp just how crippled the real global economy is. Contrary to conventional wisdom November – instead of October – could also end up being the month when stock prices reach a major bottom.
This ‘bottom’ speculation comes from a commentary penned almost 5-years ago (and a chart generated nearly 7-years ago), while comparing Dow 10,000 to Dow 1,000. For the record, if history is going to repeat itself the ultimate Dow bottom will arrive on November 11, 2008 and Dow 10,000 will finally be broken to the upside approximately 7-years from now.
While these points of interest are not rehashed for any specific investment purpose, they do help highlight just how closely the Dow has followed the 1966-1982 stagnation script. As for the necessary 21% meltdown in the Dow by Tuesday to make this story complete, unlikely but not unthinkable.
December 10, 2003 Final Dow 10,000 Party May Be Decades Away FallStreet
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