Well if I know the answer, I've told some of you before that I'd mortgage everything I own, borrow any amount I can, fork out all I have - and invest! Charts are just pretty pictures that tell us what has been. They don't tell us what will be. Just for kicks, below is the DJI trend since "beginning of time".
Even after accounting for time value of money (aka inflation), suddenly there's still a lot of "basement" left! So Mr Dow, how low will you go?
Let's go into the pillars of American economy, the source from which all things green flow. I believe they have accumulated several pillars over 23 decades: financial institutions and then at the turn of 20th century, real estate followed quickly by airlines. When John Kennedy was president, they added automotive. Since 911, airlines swiftly sank and has been struggling to raise its head again since. That leaves us with 3: finance, real estate and automotive.
Unless you've just returned from Mars after a 3-month vacation, we all know what happened to each of these 3, most recently, the automotive. Coincidentally, they all share something in common - the need for credit to survive. So today, the clock has been set back to 2003. Going further back will only mean we have to include the airline industry, which is a non-entity today.
I personally believe we are hovering close to the basement floor today but I'm not telling you to "mortgage everything you own, borrow any amount you can, fork out all you have". Use what you have between your ears.
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