“I’m guesing the bottom is at 6,000, but I could be wrong. The Community-Organizer-in-Chief could wake up the morning it hits 6,000 and announce, “because of the bad economy, we need to nationalize health care”. That would send us in freefall to 4,000, but even Obama couldn’t be quite that stupid. Could he?”
That’s the problem with bargain hunting in this climate. Normally, it’d be the way to go. But the earth has shifted here. By pushing for socialism, Obama is creating a new bottom and none of us knows how low it is.
What is the bottom when the very notion of private property is no longer as secure as it once was, with everything we earn and own subject to a new level of taxation (confiscation)? How do you fully price that in? Good luck.
I'm guessing the true bottom is a date and not a number. Around July 2012, we'll see the writing on the wall and know that the excursion into socialism is over. That'll be the bottom and the time to buy. I'll do my research in January 2012, undate monthly, and buy as soon as an Obama defeat looks inevitable. It wouldn't surprise me if July 2012 to July 2013 turns out to be the best year in stock market history. I just pray that I'll be able to buy in 2012 and not put it off until 2016 (I'm out of the market until the socialist is ready to get the boot).