What happens to Stocks now?
Peter Oberois
Jun. 2, 2009

Are you ready for the ride of your lifetime? Yes the roller coaster has started again. This time it will be mother of all rallies followed by crash of all time. Dow Jones Industrial Average will chase 11000 to 12000 by August-September. But all on a sudden the bottom will liquefy and stock market will melt like never seen before. This time neither Chinese buying US bonds nor Government bailout funds will help. Dow will be below 6,000 before end of the year. Yes, the market can collapse 6,000 points in September-October as US Treasuries reach astronomical rates.

The fear is getting replaced with jubilance and bubble. The main street suffering is escalating. Politicians are out of touch with people busy bailing rich and worthless banks and companies one after the other.

The rise will be straight up now followed by straight down. Investing in this market will be just gambling because no one knows when the bottom will liquefy.

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