Does POOM mean more stock drops?

[LazyBoy]

For those of us who didn't get completely out of stocks in time, is it still time to sell? I know EJ/iTulip said get out at the end of last year, but I'm not clear if the POOM theory says there are more drops to come.

Thanks,
LB

[c1ue]

LZ,

EJ has not retracted his statement that we will see Dow 5000 before this is all over.

Of course, the 5000 number represents a 2007 (or is it 2006?) purchasing power dollar.

If we get 20% inflation, then the actual number might be 6000 for example.

EJ has also made a statement that the present rush into dollars, hence stronger dollar, hence lower commodity prices, will likely end in 2 to 6 months. By then it is equally likely that the export engine in the US will have been significantly compromised.

Thus it is possible that we'll see a short term rally before the big fall - but again the wild card is going to be what lame duck Bush and golden boy Obama do in the next several months to a year.

My advice: review your portfolio very carefully. Any company which you are 100% certain will outperform 95% of its peers for the next decade, you can keep. The rest, keep an eye out to sell.