Chat with us, powered by LiveChat

Dow could fall below 10,000-points and be average

chart for dow
Print Friendly, PDF & Email

The Dow Jones, which is currently hovering in the 16,000-point range, is still overpriced according to long term stock valuation measures. There is no mistaking that stocks are a lot cheaper now than they were years prior, but even The Worse Start to a New Year hasn’t brought the Dow Jones down to “Cheap Levels”.

According to FactSet the average annual per-share revenue is 1.4 time the annual revenue, yet the average since 2001 is 1.3 times. Simply meaning, the Dow could fall much further (1000-points) and still not be below average. At the same time, non-financial company debts are soaring according to the Federal Reserve, with increases since 2007 as high as $8 trillion dollars. FactSet analyzed the numbers including the soaring debt attached and revised the total stock valuation to 2.4 times the annual per share revenue.

Defend Yourself Against A Volatile Global Economy. Click Here To Download Our FREE Investor's Power Guide!

Additional data from the federal reserve says that US Companies are now valued at 90% of their asset replacement costs, yet historically over the last 100 years’ companies have always been at about 60%. Clearly alerting us that The Dow could fall by another 3rd down, below the 10,000-point range, and still be average.

Capital restrictions are tethering your money while bankers and stock brokers are all urging people to buy the market dips. I personally believe the biggest dips are yet to be seen and many people listening to their brokers are going to lose big.

JP Morgan Chase in unusually bearish manner recently told their customer to sell market rally's.  RBS(Royal Bank of Scotland) made the statement that "Exit Doors look small in crowded Halls" urging an exit from the market before mass exodus happens.

Stocks are nowhere near the bargain basement prices and should be avoided till the dust settles.

Here’s what JP Morgan has to say… Read more.

No Investment Advice

GSI Exchange is a publisher and precious metals retailer. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Content on the Site is provided for information purposes only, and none of the information contained on the Site constitutes an offer, solicitation or recommendation to buy or sell a security. You understand that the GSI Exchange receives neither monetary or securities compensation for our services. GSI stands to benefit from the sell of retail cost precious metals on this site. To avoid hidden costs all prices are listed live 24/7 on this site. Read the full disclaimer

2022 Info Kit

GET YOUR FREE

GOLD SILVER INFO KIT

Precious Metals and Currency Data Powered by nFusion Solutions