The Dow Could Easily Correct to 14,000
Stock-Markets / Stock Markets 2013 May 29, 2013 - 01:46 PM GMTBy: DailyWealth
Predicting a stock-market correction is a rough business these days. The Dow Industrials seems to add a few hundred more points each and every week.
It makes sense to expect a market correction. No stock, commodity, or sector runs higher without taking a break. That's just how the market works. But if stocks do sell off, how much can we expect from a natural, healthy market decline? Today's chart provides a clue...
Old market hands say it's reasonable for a bull market to "retrace" 50% of a big gain before heading higher. Since bottoming in November, the Dow Industrials has climbed from 12,542 to around 15,379. Should the Dow retrace 50% of this big rise, it would take the index all the way down to 13,961.
Bottom line: Sure, the market is due for a correction. But don't be surprised how deep it goes. And remember that it's not unreasonable to expect a decline all the way down to the 14,000 level.
The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.
Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
Daily Wealth Archive
|
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
