Talk of an Imminent Crash

By on May 19, 2010

Joshua Brown at Business Insider reports that many investors, including Dow Theory Letter’s Richard Russell, are expecting the market to crash before year-end. Russell goes as far as to say we won’t recognize America by the end of the year.

Eddie Elfenbein posted the results of a CNBC poll yesterday in which 40% of respondents predicted a 50% haircut for the Dow. Seriously, almost half the respondents predicted Dow 5000 by the end of this year.

That’s some serious bearishness, and if one is a contrarian, may actually signal higher prices ahead.

SMA Comment: Although I now seem to have a lot of company, I’m sticking to my prediction made last month that the Dow will drop below 9,000 by October.

Source: Business Insider
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