This is a valid question I think. This is the question I have been asking myself for a few weeks now.
Dow today is at 10,545 that is an increase of 61% from the March 2009 Low of 6,547.
Likewise, Nasdaq today is at 2,288 which is 80% higher than March 2009 Low of 1,268.
61% and 80% higher within the last 9 months. It begs the question whether it was way too low in March or now it is way too high given the current economic condition with over 10% unemployment rate and credits for business and consumers are tough to come by.
The truth is that when stocks going down, they tend to go down more than they should have been and when they go up, the same way they go down, they shoot up more than they should go up.
I would think that in the New Year (2010), we will see some mild correction, perhaps in Feb or March 2010. I think stocks will do just OK in Jan 2010.
Please be advised that this reflects my opinion only and as the usual disclaimer says, please consult your financial advisor before investing
Happy New Year to you all !
