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March 03, 2009

How Low Will the Markets Go?

If I'm doing the math right -- and I'm not at all sure I am* -- it could, and maybe likely will, fall to one-eighth to one-fifth of its peak values.

* My guess is based on the finding that at peak stocks were selling for a record 40 times their earnings, and that after a crash, they usually fall to 5-8 times their earnings.

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posted by Ace at 11:32 AM

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