Dow to fall to 8,000 this year says Joseph Granville
Posted on 24 January 2012 with 4 comments from readers
Veteran chartist Joseph Granville thinks the Dow Jones Index will slump by 4,000 points to 8,000 by the end of the year, with the top in last Friday. He spoke with Adam Johnson on Bloomberg Television.
He was rated the number one market timer in 2011. Mr Granville has a long history of spectacular hit and miss market calls. Momentum, price and volume are his guide. Trading volume is the lowest since 2008.
Stock market crash
Markets will go straight down for the next few weeks with 1,000 points down a quarter until the end of the year. This is not a man to ignore.
His advice concurs exactly with the warning in the last ArabianMoney investment newsletter. This presented our ideas on how to short this market that were not published on this website (click here). New subscribers will get the January letter with our compliments. You still have time to short the market if Granville is right!
4 Comments posted by readers:
The Dow might go down to 9,000 if Europe melts down. I doubt that the ruling class in Europe will sit back and watch that happen.
Ben Bernanke has his printing press all oiled up in case the Europeans continue to screw-up, like last year. Some experts are saying the US economy will grow by 3% this year. I will be surprised if it exceeds 2%.
Watch the State of the Union speech tonight. You WILL be surprised at some of Obama’s proposals.
Chartists remind me of witch doctors.
Ed Note: Not sure, he did get the rally right two-and-a-half years ago.
It’s quite possible for the Dow to drop 4,000 points this year, but like Bill, I doubt it will happen, primarily because the Western Central Banks, the Euro elites, and the US elites will do their best to prop up the markets. My guess (and it’s only a guess!) is that TPTB will be “partially successful in propping up the sick stock markets, resulting in a 2000 point Dow drop.
@ Bill, near Slidell: Good points!
Lies – Distorted Truths – More Handouts – More Votes:
Obama’s State of the Union was full of lies and promises of more handouts. I guess those tactics are necessary for his re-election, but with such poor candidates to oppose him, how can he lose?
A final note: if Granville is anywhere near correct, Obama can then kiss his second term “goodbye.”
Entertaining stuff. This old guy has been making wild guesses on the stock market for over half a century, and sometimes he gets it right. But what’s his objective track record? Let’s check Wikipedia:
The Granville Market Letter “is at the bottom of the Hulbert Financial Digest’s rankings for performance over the past 25 years – having produced average losses of more than 20 percent per year on an annualized basis.”
Oops! OK what about his personal style? Is he a sober and serious analyst? From Wikipedia again (quoting Robert Shiller):
His investment seminars were bizarre extravaganzas, sometimes featuring a trained chimpanzee would could play Granville’s theme song “The Bagholder’s Blues,” on piano. He once showed up at an investment seminar dressed as Moses, wearing a crown and carrying tablets. Granville made extravagant claims about his forecasting ability. He said he could predict earthquakes and once claimed to have predicted six of the past seven major world quakes. He was quoted by TIME Magazine as saying “I don’t think that I will ever make a serious mistake in the stock market for the rest of my life,” and he predicted that he would win the Nobel Prize in economics.
He may be right down the road but for the last 3 weeks he has been wrong. Warren thinks we climb until June.