‘Dow Theory’ Says ....

‘Dow Theory’ Says Worst Isn’t Over for U.S. Stocks as YRC Falls

The Dow Theory signal goes against all 10 Wall Street strategists tracked by Bloomberg, who on average project the S&P 500 will end the year at 1,059, a 38 percent gain from yesterday’s close of 770.05.
Almost $800 billion in federal spending and the cheapest valuations in two decades will spur the rally, the strategists say.
Bloomberg.com: Invest

 

I think this part of the article is prudent reading...

In the short term, if the US announces it plans to nationalise any of its major banks then I think we can all expect a massive sell off in equity markets around the world. In the longer term there are just way too many countries and big corporations at risk of default to give the financial system any reason to be confident as we go forward into 2009.

I think 2009 can be viewed as a success if we are still around the 750 - 800 level at the end of 2009, let alone getting back to 1050!