How’s that recovery thing working out for you?
…the current 6 week drop, which is the longest in the last 9 years, or since 2002, may just be the beginning. And while our prediction that 2011 is a replica of 2010 is now confirmed, the far scarier possibility is that the next comparison to 2011 is 2002 – if that year is any indication, the SPX will drop to ~1000 before rebounding: obviously at that point the Fed will have no choice but to proceed with QE3, or the downward momentum will accelerate in what may then become a repeat of October 2008, and all those predictions for an S&P 400 would promptly be validated.
As for me, I fully expect some financial hocus-pocus from both Treasury and the Federal Reserve to reverse this. In the end the hocus-pocus might not work even in the short term, but I bet they try…they just can’t go in to 2012 with a recession raging across Obama’s polling numbers (and that is all they care about – not you, not me, not the country…just getting Obama re-elected, so that the bankster/bureaucrat gravy train can keep rolling).
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