| I guess the answer to that question would be "In | | | | Ventura, Calif. “I’ve been holding hands |
| what year?" Certianly not in 2008 if you ask | | | | and comforting people to get through this and not |
| stock market hyper guru Abby Joseph Cohen, | | | | to panic at a possible recession.” Yet some |
| the superbull at Goldman Sachs, who maintains | | | | analysts warn the news could get much uglier. |
| that the Dow will finish 2008 at a level 22 percent | | | | Earnings forecasts have gone down quite |
| higher or 14,755. You do know that she makes | | | | dramatically this year! |
| money by people buying stock don't you? | | | | “What could cause greater economic losses or |
| Back in the real world, the stock market ended | | | | fallout in the market would be further recognized |
| on Friday with the Dow Jones industrial average | | | | losses or downgrades in the financial sector,” |
| falling 59.91 points, to 12,099.30. That modest | | | | said Joe Davis, an economist at the mutual fund |
| decline capped a four-day 678-point plunge that | | | | company Vanguard Group. “That is the heart |
| left Wall Street traders and everyday investors | | | | of the problem and where the greatest risks |
| wondering if the worst was over. | | | | lie.” |
| Abby would of course say YES! | | | | America is also at risk of losing it's Triple A credit |
| Ah, but there are other voices. David W. Tice, a | | | | rating! |
| renowned bear, said Friday that the Dow would | | | | Indeed, while many of the world’s largest |
| sink to 6,000 by the end of the year as the | | | | financial institutions, including Citigroup, Mejrrill Lynch |
| country slides into a recession. Now we're not | | | | and UBS, have written down billions of dollars |
| talking about a small difference here. While their | | | | worth of securities linked to mortgages in recent |
| views diverge, both strategists agreed on one | | | | weeks, some investors remain concerned that |
| point: The wild ride is far from over. | | | | losses could grow if default levels continue to |
| Be prepared for sleepless nights if you decide to | | | | climb not only on mortgages, but also on credit |
| invest in this crazy market. Or, you could just buy | | | | card bills and auto loans. And, making matters |
| some gold coins and go about your business, while | | | | worse, there is mounting concern about the ability |
| sleeping well at night. In whiplash trading, the Dow | | | | of companies that sell insurance for bonds, |
| has fallen 14 percent from its peak in October. | | | | including MBIA and Ambac, to survive. |
| While the market has taken deeper dives in the | | | | One would almost have to automatically say that |
| past — it plummeted 37.8 percent from | | | | ANYTHING is POSSIBLE with the environment |
| January 2000 to October 2002, for example — | | | | that currently exists world-wide. Whereas in times |
| volatility is approaching its highest levels in several | | | | past America could largely dictate what happened |
| years. | | | | internationally, those days are over. |
| “The R-word is really scaring investors,” | | | | Is 6,000 possible? Absolutely! Is it probable? |
| said Leon Rousso, a certified financial planner in | | | | Doubtful! |