Markets might drop by 50%?

[konradv]

DOW almost at a new high.

S&P 500 also near a new high and the NASDAQ near a 52 week high.

 

[auditor0007]

Corrections usually are closer together than this Moonglow. The longer it takes, the more likely it will be bubble-like. Meaning much bigger and longer lasting. Of course government will bailout the banks, AGAIN. Only the little guy with his retirement account gets burned.

In my book, there is no need for a big correction. In 1993, the DOW was around 3500. In 2003, after a small downward correction, the DOW stood at 8000. Now eleven years later, the DOW sits at 17,300. The increase between 1993 to 2003 was much greater than from 2003 to 2014. If we remove the great collapse of the market in 2008/2009, the market would just have shown average growth for the entire period. Much of the growth in the market was just an adjustment from the massive losses during the crash. On top of that, Main Street is getting stronger by the day.