Quote:
Originally Posted by JohnnyD
Because most of the market is reactionary. If the default happens (which doesn't really matter if it does or not), the market will immediately tank due to all the propaganda in the news and by politicians about how terrible it is that the US surpassed an arbitrary number on how much it can borrow.
When that day happens, I'd bet the market falls 3-5% the day of the default and another few percent when the credit rating (which is should be decreased anyway) is reduced, recover a few points as people buy in on bargain priced stocks and then sit stagnant in a "150pts up, 150pts down" day to day trading like the market has been doing for a few months now.
I'll tell you though, anyone with some liquid cash on-hand should dump as much as they reasonable can afford when the Dow gets down near 11,000.
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11,000... here we come. Probably a 1-2% bump tomorrow, small bump over the weekend and another 150pt drop Tuesday. Anyone else have some guesses?