Rise in S&P in recent days is a function of underemployment because of fiscal incentives – where will the stock market be at the end of the year?
Allan Hershey
Mar. 6, 2007

During a short period of time, between 1999 and 2002, underemployment actually reduced. It was also the years when stock market collapsed.

Now, something interesting is happening. The underemployment is changing into unemployment as deflation spreads like a wild fire. The issue is no longer getting someone cheaper to get the job done. Now the issue is to shutting the money losing units. It is spreading as deflation spreads across the board.

Now underemployment will change into unemployment - it has already started ad evident from low number of non-farm job creations and slowly creeping unemployment claims.

Dow can drop precipitously if the correlation is correct. As underemployment changes to unemployment, stock markets will implode with extreme power.

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Whenever the economy gets its liquidity from borrowing, the gold and stock markets run in tandem. Many analysts confuse between inflation driven gold market and borrowed liquidity driven bull markets.
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100,000 jobs last month, the fewest in two years, after a gain of 111,000 in January-a sign of deflating economy headed for recession
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Rise in S&P in recent days is a function of underemployment because of fiscal incentives – where will the stock market be at the end of the year?
Allan Hershey
Dow can drop precipitously if the correlation is correct. As underemployment changes to unemployment, stock markets will implode with extreme power.
READ MORE>>

Falling productivity and capacity utilization signal the end of long-term bull market in word stock markets – a repeat of 1929-33
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The fundamentals of the market is bad and once these executives find no reason to inflate profit any further, the real shock of the millennium will be in – the corporations were manipulating the books just like backdating options.
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If and when Dow, S&P and Nasdaq opens limit down for several days – how can you protect yourself?
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When limit down occurs, there may not be any official bids. That is dangerous because the next day it can go again limit down. If markets do not trade, you will not be able to exit the market.
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