Hey, how big does everyone think the sellof in the stock market will be once the !2 numbers come out and its obvious that things are not getting better?
We'll probably retest the lows of March, unfortunately, if we do not see any signs of a slowdown in the economic problems. It could be a quick and very nasty plunge to 6500.
I have no idea what news you two are listening to. it seems that neither of you pay any attention to leading indicators and are simply focused the trailing
I'm not sold that we will see that other leg, but I am going to be cautious. I haven't seen many good signs that we are out of the woods yet. The financials seem to have stabilized to an extent, but there is the looming commercial real estate collapse that could happen in the future.
What looming real estate collapse? You mean the one that has already happened and is currently running out its course. Prices have fallen about 75% in some California locales. Prices won't be going down much and all the good deals are getting snapped up in the matter of days, at least in the bay area. Certain desert areas of socal and Florida probably have some more misery to go through but even there the worst is over. The biggest thing that will drag down prices from now on will be the short sales.These will be located all over the market, upscale and downscale, and should affect the upscale markets more since they haven't been ravaged by foreclosures yet. Still most of the value in those markets has already been lost and the amount the market falls can be manipulated by the banks. It might even end up stabilizing some banks when candidates for foreclosure end up selling their house to a properly financed buyer. The bank still loses money but not as much as might have been predicted when all hell broke loose last year.
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