Quote:
Originally Posted by $5 submissions
Like I keep saying, if the US follows Japan's lead during the "lost decade" of the 90s, the "bottom" of the Dow Jones Industrial average will be 20% of its record high of 14000... 2800. We're still 4000 points away from the bottom. I hope this doesn't happen and I hope I'm wrong. But I think all these bailouts and stimuli will have MASSIVE unintended consequences.
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Well - the current P/E rationof the DOW is about 14. In past recessions, the trough was usually about 7-8 P/E. That puts the down bottoming out somwhere around 3000.