Dow Jones Drops below critical 10,000 level

Dow Jones Drops below 10,000 level. It is now 9:30 am PT, Oct. 6, 2008, and the Dow is down another 480 points to 9,858. This very bad.

There is still talk about credit problems world wide even though a $700 billion bailout was pasted.

For people who are not familiar with the Dow Jones Industrial Average, it has been called a measure of the health of our economy.

 

I don't believe this is a buying opportunity unless you are willing to take the chance and ride this down. I'm going to be, what people might call bold, and say that the Dow Jones will drop to 8,000. I'm positive this is ware it will go. My real fear is that the Dow will drop to 4,000.

 

I don't hardly believe it nor do I want it.

I believe the market was 4,000 in 1994 when Clinton was in office; at which time he happened to be developing stronger ties with the Chinese.

To make thinks worse if this market drops the same way it dropped at the time of the start of the depression, this market could drop to 4,000 for sure. I know it seems irrational but this is what happens under bad circumstances.

It took the Dow Jone 14 years to go from 32 in about 1914 to 380 in 1929. The move can be describer as a parabolic move to the up side the same that we experienced from 4,000 to 14,000, beginning 14 years ago in 1994. In about 1932 the market drop back to 42 points. This suggests that the present market could take another 2 yrs to reach the 4,000 level.

Things could get even worse. This market may stay at these low level's for 10 years.

All this assumes things continue as they are.

At this moment the Dow is down 710 points.

 

I know you knew that.

Your right it will be substantial. It will not be pretty. This is an understatement. People like to say this is 2008, not the 1930's but if you don't believe in soup kitchen's just look at the people that have been living out of grocery carts.