Originally posted by jophda
Finished just a pip off it's low .
Seems over sold to me but still a lot of money trying to get out .
The whole market looking a bit wobbly .
Are we nearing the big market readjust that the bears have been predicting for years ?
gltah
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Are we nearing the big market readjust that the bears have been predicting for years ?
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Quick answer is no!
You need to peak first, we are still 15% down on 2007 peak, adjusted for inflation it's more like 40% down, sound like an overbought market to you?
2007 was indeed a peak but I don't recall these so called "warnings" then.
Actually as I remember it many of the "intelligent" investors issuing constant "warnings" at that moment were mostly saying the market was in a "new normal" due to the resources boom and could continue for decades.
11 years later the same people issue "warnings" LOL, not to mention the fact these same people were generally saying SELL SELL SELL in 2009.
What people need to remember is that 2007-09 was a 2-3 times a century event, between these periods it's generally a 10% pullback once every year with 20% once every few years, look at the charts and that's exactly what we've been having, there have been several 10% pullbacks and multiple 20%.
Current DOW bull run will take us well north of 30000 and in ASX when we hit our stride again expect 15000 IMO.
Might sound overly bullish but pretty standard fare going back through history, several times the DOW has increased over 10x with market very similar to what we see now.
1987, 2000 and 2007-09 were all large drops resulting in HUGE sideways markets, would not be a stretch to suggest this current run could be a 10x plus increase in the DOW from the 2009 low.
People that say this current run is 10 years old are forgetting multiple 20% drops and several 10% drops (twice this year alone!)
