RiskAverseAlert

Why the Dow Is Headed to 6000

Equity is DEAD money. There are no ifs, ands, or buts about it.

Why do people find it so hard to understand that, with a mountain of debt existing higher up on the accounting food chain, and with capacity for servicing it continuing to collapse (just keep your eye on that moribund real estate market), equity in all forms is at incredible risk of being indiscriminately sold simply for the sake of raising capital that's needed higher up in the financial food chain?

What do you think was behind last year's equity sell-off? This risk remains intact. Dow 6000 is a terribly optimistic forecast.