The markets crashed in 1929 after a decade of credit pumping into the economy
The markets bottomed and recovered with a rally into 1930
Many of the people who lost money in 1929 piled back into the 1930 rally and then rode there “investments” down to the ultimate bottom – I think the Dow actually bottomed at 42 points
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The markets crashed in 2008 after 6 or more years of credit pumping into the economy
The markets bottomed and recovered with a rally into 2009 (according to esmith)
People who stayed in the markets during 2008 are down 30 to 50% on their “investments” and hoping for a recovery rally
A replay of 1929 / 1930 would have the Dow back to 11K or maybe even 12K before it breaks down and heads for its real bottom which will be below 1000 points sometime in the 2014 / 2015 timeframe
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Smart money didn’t stay in equities during 2008 so this advice only applies to people who still have “investments” in the equity markets
When the Dow rallies back over 11K in 2009, get the f*ck out of the markets or you’ll be very sorry!!!
