Three 2009 Stock Market Predictions

Predictions:

1. All predictions that you will hear over the course of this coming week will not come true.  A wise man once said; “he who predicts does not have knowledge and he who has knowledge does not predict.”  Predictions are like trying to pick number 20 on a roulette table, the likelihood you hitting the 20 is very slim.  Same goes for predictions, they are rarely on target.  The best way to go about making a prediction is to paint with a broad stroke!
2. The treasury bubble that everyone is predicting will not come as fast as everyone thinks.  Look for TLT to run much farther than most will think it will.  It is currently in a parabolic move and has yet to see any topping signs (blow off volume, low volume new highs, etc).
3. The market will hit 50% from its ‘08 lows.  In 1938 the Dow Jones suffered a 50% drop from its 1937 highs, from the ‘38 bottom to its high the market roared 50%.  Don’t be surprised to see this market reach that level, only to roll over and take out the ‘08 lows.  In 1942 the market finally bottomed as it took out the 1938 low.

Please feel free to post comments regarding my predictions!  Post a few yourself.

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