After watching yesterday’s market plunge, followed by the 9.4% selloff in Tokyo last night, I’m thoroughly convinced that the race for the bottom is in on.
In Japan, the benchmark index dropped the most in 21 years as investors were chilled by a report in the Nikkei business daily based on unnamed sources that asserted that Toyota’s profit was likely to fall around 40% in the year to next March on weak sales in the key North American market and slower growth in China–far worse than the automaker’s previous forecast. [via Forbes]
As I said before, my simulations show a race to 700 for the S&P500. I still have a little bit of cash left to inject into my 401k at that level. If it goes lower I’ll be injecting my capital into new shotgun, spam, and toilet paper.
You should have a look at the chart just put out by Tharp on his free weekly news letter. It is a corker. It shows how the fall is almost identical, only faster than the one that happened during the internet bubble.
The dot con bubble bottomed out at around 800 before the market recovered. This time I wonder if your 700 prediction is low enough because we are talking credit crisis here not a bunch of over hyped internet companies.
You are probably right. So, I am going to see if I can corner the market on toilet paper now, because it is going to be worth more than Aussie Dollars soon.
Caprica: The Aussie Dollar implosion is just plain awesome (not in the good sense).