Where Do You Think The DOW Is Going? Message Board

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From: SI Brad	9/16/2011 12:10:01 AM
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What a great subject for your first day on SI! Are you looking for short-term predictions or long-term ones? I will venture to guess that tomorrow (Friday) will be an UP day for the market, and Monday will be down. Why? Options expiration...stock options expire tomorrow (the third Friday of every month) and the prior day's movement is a often a precursor to the expiration day. When you have a strong 2-3 day move associated with this "witching day", the trend tends to reverse the following Monday. Long-term prediction? The Dow will be higher 30 years from now, at least in nominal terms. If you are investing for the long-term, it's a much better bet than buying a government bond paying only 3% interest. Many people (myself included) believe we will see a sizeable spike in inflation in the next 5-10 years...if that's the case, putting your money in precious metals, energy, and commodities is the way to go.

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