With more than five months elapsed since the bankruptcy of Lehman Brothers, it appears as if the major stock markets in the world are attempting to put a permanent bottom in place, from where to embark on yet another multi-year bull market.
I've analyzed, with data originating from the NBER's library, all the major recessions beginning with the one starting in May, 1937. After a lot of time consuming analysis, coupled with easy to comprehend mathematical calculation, a novel, yet-to-be-discovered stock bottoming pattern has been successfully identified.
I will not yet disclose or illustrate its apperance, but I'll make the following projections:
The Dow Jones Industrial Average, with today's closing value of 7270.89 has, with a 45 % chance of dropping another 10 %, bottomed.
A short list of individual stock advice before ending this Blog's first post:
ConocoPhillips will bottom at the price of $32/share, +/- $2 share.
General Electric at 8, +/- $1.
Honeywell at 22, +/- 2.
Caterpillar at 24, +/- 2.
All the stocks above are considered a strong buy, for the long term.
More tomorrow on the macroeconomic implications of my projected stock market bottoming scenario.