New York City,
With a strong market up to August, the Dow has managed to get deep into 15000 plus area. But yesterday, the support level at 15000 has collapsed and now the Dow finds itself in a free fall scenario that could push it at least 10 percent lower by mid October (13500 area ). With the possibility of Fed tightening finally becoming more real, interest rates could move much higher and strengthening of the dollar also against the euro could take effect. " This is something that I have been looking at as we see lofty valuations for many of the Dow components. With a strong summer, I don't expect the fall to be kind. Also, adverse international events could always trigger adverse reactions for the multinationals. Even though there are dangers for the blue chips, I still see opportunities for a selection of smaller caps. " FPG.
With a strong market up to August, the Dow has managed to get deep into 15000 plus area. But yesterday, the support level at 15000 has collapsed and now the Dow finds itself in a free fall scenario that could push it at least 10 percent lower by mid October (13500 area ). With the possibility of Fed tightening finally becoming more real, interest rates could move much higher and strengthening of the dollar also against the euro could take effect. " This is something that I have been looking at as we see lofty valuations for many of the Dow components. With a strong summer, I don't expect the fall to be kind. Also, adverse international events could always trigger adverse reactions for the multinationals. Even though there are dangers for the blue chips, I still see opportunities for a selection of smaller caps. " FPG.
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