Is a SPX -80% target (600-1000) exagerated?
Considering what we are seeing happening is an aggravated version of the 2008 financial crisis, with factors like deglobalisation, international trade and price wars, national and corporate debt crisis even furthering the severity, logic would seem to defend a price target that is at, or lower than the 2008 lows. This considering that most realised stock market gains have been realised with government stimulus money, buybacks, and pension funds buying stock. Seems like the price manipulative buybacks (tool to get insiders out of their stock options at maximum prices) will be forbidden, the pension funds are having to pull out and return the investment cash to the baby boomers, who in turn after this trauma will NEVER reinvest this money in the market as this is their lifeline in a pensionless world. This is leaving the government as the only remaining buyer of markets. So, will their money run out, and if so, when?
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