I heard a radio-station contest to predict where the Dow will end the year. Beyond a specific number, that’s not much a challenge. We’re long past the days of “Dow 36,000” forecasts. The Industrial Average, along with the rest of the stock market, has already suffered through a lost decade compared with the 1980s and 1990s. Ten years ago, it stood at 9891 after the dot-com bust and assorted corporate frauds ended the great bull market. At the peak of the real-estate bubble, it closed at 12,556 on Jan. 12, 2007, around today’s territory. By comparison, the Dow went from 2800 in 1990 to 11,700 in 2000.
That’s not to say there’s not money to be made in specific equities. But the trust Americans had in an ever-rising stock market has been shattered by bear cycles, lost nest-eggs and a sense that the Wall Street Boyz have an insurmountable advantage at the casino through flash trading and other tricks. The Great Recession, high unemployment and the housing collapse financially ruined many, and the year ahead looks perilous with the Euro crisis.
So, today’s poll:
Read on for the week’s links and the haiku…
This Week’s Links:
Today’s Econ Haiku:
If Morgan’s ailing
And BofA pulling back
Bank on a tough year