Yesterday afternoon, Bob Prechter was on CNBC touting his Dow 2,000 theory and the market, coincidentally or not, sold off. Does he realize what the consequences of Dow 2,000 would be? To start, 80% of the market capitalization of the 30 Dow companies would be wiped out. I’m not so sure Prechter knows that stocks are interests in real companies. Check out the CNBC clip below.
On the other end of the spectrum, you have a Dow 38,820 prediction from the Stock Trader’s Almanac’s Jeff Hirsch.
His analysis claims that regular wars lead to government intervention and high levels of inflation. Check out his chart below, courtesy of the Stock Trader’s Almanac.
-Chart courtesy of the Stock Trader’s Almanac
Which of these headline grabbers do you think is closer to the mark?
