DEEP THOUGHTS FROM RICHARD RUSSELL is and article on Pragmatic Capitalist that contains some recent exerpts form the latest Dow Theory Letters. It begins, "Now, I believe, we are in a primary bear market that will ultimately “clean house.” It will deleverage business, consumers, traders, nations and every other area that has been leveraged. The process will be extremely painful, as all bear markets are, and in the end it will bring stocks, assets, real estate, back to around the basic values that existed prior and just after WW II." I'll bet you click the link to go read the rest. Oh, give me a GOOD check before you go.
UPDATE - I think he's nuts. We'll see lower lows, but the SPX from '39 to '45 had a range of 7.50 to 13.50 and the DOW ranged from 160 to 90. Don't think so. If you chart the history of the DOW and lay a lower trend line on it (which I do not think will be broken), I can see the DOW sub 4,000 possibly stopping at support from '94 - '95 at 3.913.