Dow 0?

October 10, 2008

Where is the bottom? Dow is at around 9700 and the futures are down close to 200 before today’s open. Where is the proverbial bottom? If we were to extend a simple projection of the Dow’s decline and fall over the past month on a moving linear regression line, we could reach Dow 0 by Christmas. If we have twelve more straight days like Oct 9, we would hit 0 in 12 trading days. If we have eighteen more trading days like Oct 7, we’ll hit 0.

The moment the Dow hits 0, 144,000 people will suddenly disappear. Sorry, I couldn’t help myself.

Now none of these scenarios will happen right? If not, this is a good time to buy then. Or is this like 1930, when some people were saying it was a good time to buy. Joke was you had to wait nearly 30 years, go through a world war, etc. to recoup your investment. Now think if you had bought $1,000 of General Motors stock in 1951 or 1952.. today you’d have.. less money than in 1951 or 1952! I digress.

Side note, can’t get away from the other main event. Coincidence? These two stories appeared like so in Yahoo! this morning. McCain may need to ask, ‘Is our campaign working?’

This is reassuring..  but the people who are showing up for the rallies are persons of concern.

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