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Wednesday, November 26, 2008

The imminent risk of a Market Collapse and a further Meltdown is probably not due before March or April 2009.

The risk of a Market Collapse and a further Meltdown is probably not due before March or April 2009. (Editorial Trendsbridge Team, November 26th, 2008)

The inauguration of President Barack Obama is on the 20th of January.
He will come up with an excellent team, but they have to clean up a terrible mess. It will take some time before results are shown. More bad economic news will show up in or just after the 1st quarter of 2009, the banking (financial) sector is far from healthy, and it takes some time for a new spirit to emerge.
As with any new President he will face unprecedented political (geo-political), and in his case economic challenges in his first 6 months.
High volatity in the markets can be expected.
From now on (end of November) and for the next 3 months we do not expect a real meltdown, but some bear rallies (in bull's clothes) and 'dead-cat jumping' markets.
The downward potential for the Dow Jones (DJIA) is something like 5000 or 6000, and we expect this to be reached in the first half of 2009, with a difficult and erratic climbing upwards through 2009 and the beginning of 2010.
On our site http://www.beurskrach.com we will keep the Beurskrach Indicator for the time being at 55%.

Warning: Of course this can all be wrong and turn out to be very different, but that's Life. There are almost 7 billion people on this Planet and nobody can read all their minds.

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