Between now and 2012 is going to be interesting.
The housing decline that started in 1925 and ran until 1932 weakened banks and contributed to the Great Depression, which started in the U.S. in 1929. Our housing decline started exactly 80 years later.
If we follow the same pattern:
2005 - Housing decline
2009 - Crash ... Another Depression
2012 - Bottom of Housing Market
There will be a PANIC MASS EXODUS out of stock funds from the boomers at some point in the next 4 years. The boomers that created the Buy and Hold years of the 1980s and 1990s, will create a REVERSE scenario of Sell and Hold Cash during the 2010s. The clock is ticking and 2009 could be when it detonates. ... And the Fed is quickly using up its bullets so it won't be there to break the fall.
Jan 4 - We have transitioned into a bear market. Completely different rules apply.
May 23 - IMO, any price at/above this close makes a great Nasdaq/SP500 short.
