My Stunning Prediction for the DOW

Lets look at the facts first before I make my shocking prediction

• In October of 2007 the Dow reached a high of approx 14,000 points
• The GDP of the USA is based on 70% consumer spending.

Are you seeing where I am going with this?

If a 70% drop in in GDP, and stock earnings from October of 2007 would translate into a 70% drop in the DOW, that would account for 9800 lost points. Is it that illogical to conclude that
if Americans stopped all consumer spending that the DOW would only be worth 4200?

Now, I don't believe that Americans will completely stop spending, but I do feel with a huge recession, and very probable depression on the way it is very reasonable to think that consumer spending will drop significantly.

Therefore, I predict that the stock market will drop further, and will not bottom out until it goes below 6,000.



This is not the end, its just the beginning of the end.