Sunday, May 09, 2010
JSE: Index could soon drop to 25 000
SHOOT: After the rigours of the past 18 months, the JSE and other world markets had no business to expand the way they have. Massive amounts of credit were wiped out of the financial system during the subprime crisis. Printing that money back into existence is difference to real wealth. There's a lot of unwinding and unravelling of these fictions ahead of us. The JSE bottomed out at 18 000 not long ago, it needs to settle back to a level approaching that to have any semblance of accurately reflecting the value of the market. Sorry for you.