Stock market rambling
So what does it say when Fannie Mae stock costs less than Fannie Mae candy, GM stock is cheaper than a gallon of gas, Citigroup stock is trading for less than an order of fries and GE stock is less than a small Domino's pizza?
Back in 2000, most of the Dow stocks were trading between $50 - $100 per share. Now there are two stocks over $60 per share - IBM and Exxon/Mobil. Five stocks are trading below $10 per share. More than half of the Dow 30 are under $25 per share.
My predictions are that we will not come out of this until mid-2010. I also believe that GM will declare Chapter 11 and that Citigroup and AIG will become nationalized. I think Bank of America will weather the storm, but barely. I don't see oil going above $75 a barrel this summer. I think the Dow will end the year at the 9000 level. So much for predictions.
I do know one thing. There will be another economic casualty of this market that will hit close to home. I'll post more about that in a few days. Stay tuned.
Back in 2000, most of the Dow stocks were trading between $50 - $100 per share. Now there are two stocks over $60 per share - IBM and Exxon/Mobil. Five stocks are trading below $10 per share. More than half of the Dow 30 are under $25 per share.
My predictions are that we will not come out of this until mid-2010. I also believe that GM will declare Chapter 11 and that Citigroup and AIG will become nationalized. I think Bank of America will weather the storm, but barely. I don't see oil going above $75 a barrel this summer. I think the Dow will end the year at the 9000 level. So much for predictions.
I do know one thing. There will be another economic casualty of this market that will hit close to home. I'll post more about that in a few days. Stay tuned.