Friday, October 24, 2008

8,000 Territory

Earlier this month, right after I made the 10,000 call for the DJIA trend line, and right after the $700B bailout bill was passed, the DJIA plummeted right through the 9,000s, and this week was hovering in middle 8,000 range. I'm not anticipating much steam in any recovery in to the 9,000s again.

On the other hand, last week Warren Buffett made a bottom call, reportedly moving all of his personal holdings from Treasuries to the stock market, and advising everyone else to do the same. Many feel this decline still has a little ways to go. There would be no doubt in my mind there is a long way to go, were it not for the spectre of inflationary printing.

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