Your mileage may vary:
"In the average bear market, the Dow Jones Industrial Average has fallen 30% and sometimes much, much more. The Dow decline of 2000 through 2003 involved a loss of 55%, the bear of ’73-’74 caused a 50% loss and the 1929 market wiped out a full 85% of the Dow’s value."
"We think we’re still quite a ways from a bottom. Over the next year, the Dow could fall 30% to 50% from its October ’07 top. The market could enjoy a few short-lived rallies during that span, like the one we experienced from March through May. But each rally is apt to result in a lower high and a lower low in the market."
-Paul Desmond, Lowry Research, quoted in Barrron’s
Q&A: Paul Desmond of Lowry’s Reports (February 2006)
Part II — Q&A: Paul Desmond of Lowry’s Reports (February 2006)
The Fed is walking a tightrope between inflation and a recession, hoping to find its way to neutral. Bill Gross, of PIMCO, shares their insight.
"There’s a lot of stress in the
financial markets. Let’s face it, this economy, the US economy and
even the global economy is delevering, and when an economy delevers there are
substantial problems and substantial risks.
"We’ve seen a lot of that. We’ve
seen writeoffs in the hundreds of billions of dollars with more to come. But
yeah, there’s a lot of tenuous action in the financial markets these days and I
expect more of it."
Gross: Fed Will Hold Steady for Rest of Year
CNBC.com | 25 Jun 2008 | 03:20 PM ET