Dow at 10,000, Dollar new low, turning point?

For those of you who don't know the Dow closed at the 10,000 mark today which I think is very significant for various reasons. money.cnn.com...

My number one reason is I predicted once the Dow broke 10,000 the dollar would break the Dollar to Euro 1.49 trading point (which it did). Recently the dollar has not hit this low it has been flirting with it for a while but didn't hit it until now (it's been around 14 months). The reason I think this is significant is because I believe this is a turning point within the stock market, from the deflation misguided belief to inflation. Of course we could see the Dollar hit the 1.50 Euro trading range and the Dow at 10,200, but the point is the tides are going to turn. The dollar will hit new lows and the market will soon realize this and decline.

Dollar new Low:
www.dailyfx.com...

www.google.com...

We just found out yesterday that the dollar is gradually losing its reserve status, to the by Euro and the Yen. I think we're going to see the dollar start to lose major ground here. I don't have anything to base this on other than Gold is reaching new highs, the dollar new lows, huge deficits, and of course the misguided stock market reaching 10k, which I'm guessing is going to be the high of this recession/depression.

I might just be jumping at shadows here, but I think this is a very significant day.

The Fed is going to have to raise interest rates soon slow down the decline of the dollar. It is declining way too fast right now. Once the interest rates are raised a full point or more from the current level of 0% the stock market will start to drop. I think you are right the stock market is just about at the top at 10K and there should be a correction happening soon. People will want to take profits after this major run so we should see some serious selling going on in the next few weeks.

Sorry, I'm no expert on these matters, but people have been saying it's going to drop for months and months.

I seems like all the doom and gloom gibber is just that...gibber. I'll believe it when I see it.

Alright well your going to be believing pretty soon then. I'd say it could range from a month out to a year. If you read my post you will see why it is of concern... the fact the dollar has made new lows, and will probably continue making new lows.

Let me ask you a question, is there any reason for people to have faith in the American Dollar or our financial system anymore?

We run up massive deficits with no intent to pay our loans back. Our Central Bank has a reckless policy that includes keeping interest rates super low (and has for more than 25 years), we like to bail out poor performing companies like, Freddie and Fannie, AIG, GM, etc.

I'm not really a doom & gloomer, but I know this is going to happen, and what I see points to it. Peter Schiff Explains this quite well.

reply to post by asmall89



Financial advice needed.....

IF interest rates go thru the roof, do you want to be in cash in the bank or
be out of debt (payoff mortgage)?

I'm guessing out of debt because the economy will tank.

Thanks

This DOW at 10000 is the next balloon, which is going to explode soon. The Gold is at all time high, so the Wall Street braniancs are knows this will not keep for long. There was a prediction for a possible final meltdown (Somewhere around Oct 25-27). Maybe this is the lead up.

In the present nothing supports the high DOW index at all. It has no real background and I guess it's just an artificial boost to keep it on this level to gain more trust. And when everyone is seeing this, everyone invests. When everyone invests, the balloon explodes, the DOW goes way below to 10000, to around 4000, then everyone who invested will get nothing back, while the invested money will be in gold already on someone else's account.

So here is a friendly advice: avoid any investment, because this 10000 point is just artificial. Nothing gives any background for this level. The dollar is low, the gold is high... in your place I would avoid the Wall Street in the next three-four years.

[edit on 14-10-2009 by Sharrow]

reply to post by Pinktip


Well you probably want to do both but I shouldn't be offering financial advice because I'm no expert so take it for what its worth I suppose.

If the Fed hikes interest rates and you have money in the bank you'll be making quite a bit of interest off your money (depends how much). But you also have to consider if there will be a run on your bank which might make it go broke, you could lose everything. Also if inflation takes over your money will be worth squat.

However, I doubt the fed will raise interest rates, it's probably a 50/50 chance. The best thing one can do to protect their money against inflation is buy any commodity (Silver is probably best right now) you can do this in bullion, coins, or whatever. Make sure you receive it physically though! You can also purchase other currencies like the Yen, Euro, New Zealand Dollar etc.

Remember your dollars aren't going to be worth any more outside the bank than inside, unless the bank fails.

If you still have your mortgage with quite a bit of debt on it, it would probably be wise to start paying more off, if you can that is. Don't sacrifice food or gas money, education, or anything like that. In any situation the less debt you have the better, especially when interest rates go up, if they do that is.

Peter Schiff offers good advice and he understands this more than I do so I'd listen to him.

Personally, if I had say 5000 bucks to spare in the bank, I'd probably take half and buy a mixture of silver, Yens, & Euros, just in case. Don't panic though, I think we'll get through this alright, the world wont end just because the dollar collapses.

very disturbing news indeed, time to stock up on the essentials.

a personal prediction, we will see new technology come out of the USA that has been previously "un-thought of" within the 2 years.

[edit on 14-10-2009 by The Cloak]

[edit on 14-10-2009 by The Cloak]

[edit on 14-10-2009 by The Cloak]

Originally posted by Sharrow
This DOW at 10000 is the next balloon, which is going to explode soon. The Gold is at all time high, so the Wall Street braniancs are knows this will not keep for long. There was a prediction for a possible final meltdown (Somewhere around Oct 25-27). Maybe this is the lead up.

So here is a friendly advice: avoid any investment, because this 10000 point is just artificial. Nothing gives any background for this level. The dollar is low, the gold is high... in your place I would avoid the Wall Street in the next three-four years.

[edit on 14-10-2009 by Sharrow]

Good advice
Probably be best to avoid Wall Street in any case right now.
I was thinking of the Oct 25th date and heard there would be an indicator about what is going to happen around the 15th, I know it's a day early but I think today was that indicator, or a set up for it. We'll have to see where the Stocks, Dollar, & Commodities go tomorrow.