Interest rate increases are on the way and with them slower economic growth worldwide. That much is quite clear now and the markets do not like increasing interest rates and what they mean.
This may seem totally ridiculous to almost everyone who reads this but my target on the DOW is 10,357. I predict it will be the bottom within the next three years. What value does my prediction have? To most people absolutely none. I have been saying now for almost 8 months that the DOW would sell off over a long protracted period to the 10,000 area but I have never figured out the exact area until today. In past posts I did state that over time I would.
I would like to know how many people out there still think I am being too extreme with my long protracted slow down prediction concerning our markets and that the DOW will fade back to the 10,357 mark within the next 36 months where the next bull run will be born.
Call me radical, call me an extremist, call me strange, call me an idiot, call me a broken record but do not call me wrong yet. I have three years to be proven correct.
In time I will focus more on stocks and their movements and which ones are great investments and trades.
This week I pointed out two.
National City (NYSE: NCC) is my favorite bank stock. I have as some say here pumped it since the $5 level but I did not pump it. What I did state in fact is National City is a great stock to invest in. I never stated that it was a day trading stock. What I did say was it was a wise thing to begin SLOWLY DOLLAR COST AVERAGING INTO THIS ONE for a long term investment. I stated that their is blood flowing daily in the streets in the financial sector and most people are filled with extreme amounts of fear and gloom, some even say that NCC is in way over their heads and may not survive or at best they may be bought out. I love the blood and fear on this one. Fantastic fear and panic selling is written all over it. It reminds me of American Airlines after 9-11-01.
The next one again for the record is Chevron (NYSE:CVX). Now most will argue that if interest rates climb it will hurt big oil. Well, I am looking at a much longer time horizon with CVX and with dollar cost averaging as an investment strategy CVX is one of the few stocks that one can truly invest in for the long haul for a great return in my opinion. If you have not figured out why CVX is one such stock you have not done enough DD. There is simply no logical argument why one would not dollar cost average into CVX for a long period of time for a great return.
Below is a link to one of my favorite sources for news, Bloomberg.
V.
1 comments:
"do not call me wrong yet. I have three years to be proven correct."
Over the course of 3 years, the markets will at some point be higher than they are now and lower than they are now. This is also true of just about any stock picked at random. This is like giving a weather forecast that says, "It will either rain or it won't rain." Not much chance of being wrong, but it doesn't give anyone much useful information about the weather.
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