Here's an extreme (but unrealistic) idea.
In the last few days, nasdaq went down -75 pts every day (roughly), s&p went down -40 pts and -400 pts on dow. Today I thought what if indexes keep dropping. For example, S&P is currently traded around 1000. With this pace, it takes only 25 days for S&P to go to zero from 1000. Have you ever thought that indexs go zero???
I know it's not possible because stocks get kicked out of s&p if they are not doing well. Many people got involved with stocks lately because they are cheap. I'm trying to tell them over and over again that stocks can go zero, but no one listens and keep buying LEH, FNM, FRE etc...
Tuesday, October 7, 2008
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