Dow Could Fall to 5,000… Play Defense with GLD and RYJCX
Sep 30th, 2008 | By Martin Hutchinson | Category: Featured, Financial NewsWhen Hank Paulson’s bailout bill tanked yesterday traders sold off US in a panic of epic proportions.
But Martin Hutchinson says the failure of the bill is a blessing for the economy. Propping up a rotten system will only reward failure and block creative innovation.
The worst case scenario now is that we’ll see the Dow slump to 5,000 points. This makes a defensive portfolio a must. Martin recommends invest in counter-market plays such as the SPDR Gold Trust ETF (NYSE:GLD) or the Rydex Inverse Gov Long Bond Strategy C (MUTF:RYJCX).