How low can it go?
NEW YORK (AP) — Investors’ despair about financial companies and the recession have brought the Dow Jones industrial average to another unwanted milestone: its first drop below 7,000 in more than 11 years. […]
“As bad as things are, they can still get worse, and get a lot worse,” said Bill Strazzullo, chief market strategist for Bell Curve Trading. Strazzullo said he believes there’s a significant chance the S&P 500 and the Dow will fall back to their 1995 levels of 500 and 5,000, respectively.
For those who say “Who cares?”, let me just say anyone still employed and hoping to stay that way, anyone recently unemployed and looking for work, people with 401K plans, IRAs, etc., retired people on fixed incomes who hold savings in Mutual Funds, state governments whose tax revenues are dropping like a lead weight in water, and so on and so forth. Much as we like to think the market impacts only Wall Street and a bunch of con men brokers, that just isn’t true. I said a while back the DOW would fall to 6000. Right now it looks like I’ll be right, just a lot sooner than I expected.
