My brother is convinced the majority of the companies in the S&P 500 will go bankrupt in the next couple of years. He thinks the Index will fall to 250 or lower by the end of this year.
That sounds absurd, but who knows?
I wouldn’t be buying any stocks right now, that’s all I know!
Last month, I would have said “Nonsense.”
Increasingly, I’m not entirely certain.
Obama’s announcement that cut the legs out from under the pharma, biotech and health care sectors was a Real Big Deal. Those are considered “defensive” plays in recessions and downturns - and if you look at their charts, you can see a whole lot of money being pulled out, FAST.
The whole global warming cap-n-trade nonsense and fees, could spark a selling wave in utilities.
It does sound absurd but reality is the DJIA going from 14,000+ to 7100 in a year+.
With CITI in the news, more stress tests coming and banks going under, with rising unemployment (wait til the 1st quarter GDP comes out) plus the global meltdown in banks/exports I don’t know anymore.
And I’m normally Mr. Positive.
“My brother is convinced the majority of the companies in the S&P 500 will go bankrupt in the next couple of years. He thinks the Index will fall to 250 or lower by the end of this year.”
Oh for the days when I was young and naive and I thought the “S&P 500” was a stock car race that they ran every day.