Why the S&P 500 Could Fall Another 20% in 2011

S&P 500 Forecast 2011 It seems impossible that the S&P 500 could drop another 20% to 1,000 on top of its losses of the last week, but the index was that low as recently as last July, and some of the things that pushed the S&P down then -- after it had advanced consistently from a March 2009 trough -- could happen again. The S&P 500 currently trades at 1,280 against a 52-week high of 1,370 reached late in April.

Many analysts say that the stock market trades based on forecasts of how earnings and the economy will be six months into the future. Investors looking at those prospects for year's end may not like what they see.

The primary driver of the market is generally corporate earnings. Companies were supposed to have strong revenue recoveries as the economy improved. Many had maintained profit margins during the recession by cutting costs. Much of that cost-cutting was accomplished through layoffs, which was a primary reason unemployment grew so much two years ago and has stayed fairly high. But cost cuts are typically one time events. That means many companies do not have the flexibility to drive down their costs again.

Another factor which will likely harm margins at many companies are the increases in gas and other commodities prices. Tech companies in the S&P like Apple (AAPL) and Microsoft (MSFT) are largely immune to the price of gas. But the index is also heavy with retailers like Walmart (WMT) and Target (TGT), companies that must deal with higher shipping costs and pressure from the prices of raw materials like wool and cotton. Firms like General Mills (GIS) and Proctor & Gamble (PG) are also dealing with the higher prices for key ingredients in the products that they make and market.

Top-line growth for many of the S&P 500 firms will also be an issue. The economy has clearly slowed again -- mostly due to persistent high unemployment and faltering consumer spending. The anticipated 2011 surge in corporate sales is not likely to happen in many sectors.

Poor factory orders and weak job creation helped push the S&P down to the vicinity of 1,000 last July, and both are concerns again. If jobs, consumer spending, and manufacturing strength are the critical drivers of the market, we may not see much ebullience on Wall Street for the balance of 2011.



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Dereck

By my Court Ruling the entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Case No: 050200074982008 Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09. Case Records can be viewed online at: www.court.state.md/district under “Court Records” then “Case Search”.

Court Precedents:

First Precedent:
Chase Bank USA, NA vs Dereck Dodson
Case No: 050200358872007
Note: Judge Thomas J. Love's Chambers on line dated 02/14/08
"Trial Delete" 01/18/08
This Precedent was used in Bank Of America/CACH,LLC Legal Demand


Second Precedent:
CACH, LLC (Bank of America) vs Dereck Dodson
Case No: 050200074982008
Note: "Trial Delete" 05/09/08
Complaint Affidavit/Merit Trial Set 05/09/08 for 08/04/08
Case sent to 1st Floor Chambers 05/29/08
Legal Demand and Delivery Confirmation Filed "Supporting Documents Filed by DEF" 06/10/08
DEF Filed Copy of Garnishee Response 06/27/08
Judge Love Appropriation Approval Ruling 08/04/08
Case Return to Pat King-Page (Maryland Secretary of States Office) 07/06/09
1 Garnishment of Wages Executed on a Levy 08/17/09
2 Garnishments of Property Issued 08/18/09
Writ of "No Exita" Executed 10/09/09
Note: The Judge, along with a Second Judge falsely declared me "Incompotent" based on a Trespassing Charge on Property I could prove I own in this Case. I requested a "Writ of No Exita" be Served on the Judge in the Trespassing Case and the Judge in this Case wrongfully took her position even though I am completely Precedented to be "Outside of Legal/Judicial Jurisdiction in this Case".I believe this was due to me Filing Writ of Executions to Seize Commercial Zoned Properties,(Including the Property in Question), with Large Cash Collections that are used in part for Government Payrolls, and was a direct attempt to "evade and elude" my Authority over the Government and my Government-owned Corporations, Businesses, and Real Estate. I own this Money and the Money is in no way guaranteed to the Government and is only allowed for such use by my World Fortune Companies.

Third Precedent:
Wharton Enterprises LTD (Advanta Bank Corp.) vs Dereck Dodson
Case No: 0502000026682009
Note: "Trial Delete" 05/04/09


Fourth Precedent:
Asset Acceptance (Chase Bank) vs Dereck Dodson
Case No: 050200375082009
Note: Writ of "No Exita" Served 12/16/09
"No Contact" Order 12/16/09
Summons Renewal for "Contact" ATP Required to Appear 02/16/10
"Trial Delete" 02/16/10

All Credit, Loan, and Finance Companies are now under Bank Of America proving all Creditors on my Credit Report to actually be in Debt to me.

June 18 2011 at 10:44 PM Report abuse rate up rate down Reply
Dereck

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section:
For seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86. The 21st Century Act also stipulates on pg. 85 that "Only Nonbank Consumers can suffer losses" also “Any Company, Representative, or Organization utilizing a Banks Contracts and/or Agreements to seek Claims shall be considered that Bank under the Rules and Regulations”.

21st Century Act: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

I was sued through a LLC. Debt Collection Company (CACH, LLC.) and Law Firm (Bronson & Migliaccio, LLP.), I "Counterclaimed" and won.

The Attorneys For Plaintiff also Illegally “Forged” two Writ of Garnishment of Property Requests and mailed them to Bank Of America and State Employees Credit Union. This Criminal Action caused the Judge to Execute a “Writ of No Exita” (NE-NON-EST) for Non-compliance having been established. This renders all Officials and Employees of Corporations and Businesses “Under Arrest” even without being Incarcerated, but forced to remain within the Courts Jurisdiction until the Garnishment is “Satisfied”. Mine being a Appropriation and Garnishment of “All future Earnings” the Garnishment will never “Expire”.

June 18 2011 at 10:42 PM Report abuse rate up rate down Reply
Dereck

Now by “Commercial Law and Judicial Rule” all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void" rendering my Court Records the only “Legally Binding Documentation of Ownership of the Federal Banking System and Corporations and Business under its Controlling Interests Worldwide”. Also, under the stipulated Rules and Regulations of a "Closely-held S Corporation" all Officials/Employees are under Legal Stipulations against “Domination” of a “S Corporation Owner”, and also means that "No Corporation can hold Shares" officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government" in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

The Federal Government has already been forced to discontinue supplying the Financing States use to pay their debts.

This Evidence Solidifies my Rule Violation Claims involving the: 21st Century Act, Writ of No Exita, and "Domination" of a "S Corporation" Owner which should support an “Ultra Vires Act” Injunction request for Court or State “Action”.

The Evidence will also back claims of: Racketeering, Extortion, Pandering, Theft, Federal Mail Fraud, and Telephone Harassment.
Also "Threatening of the U.S. Financial Infrastructure", which is a "Capital Crime".

June 18 2011 at 10:42 PM Report abuse rate up rate down Reply
Takin-for-a-ride

wait till correction is over before putting new money in, sell some winners, new money should go into high grade dividend paying stocks or closed end funds. Check out Business Development Companies.

June 15 2011 at 4:07 PM Report abuse rate up rate down Reply
Takin-for-a-ride

Makes sense to sell some winners and not put any more $$ into the market until this correction is over.

Buy blue chip dividend paying stocks or closed end funds, this will protect you somewhat on the downside and pay you along the way.

June 15 2011 at 4:06 PM Report abuse rate up rate down Reply
TheAcsMan

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June 14 2011 at 3:43 PM Report abuse rate up rate down Reply
LEE Resolution

asdfasdf

June 12 2011 at 4:35 PM Report abuse rate up rate down Reply
Yosh

A numbers of CEO's said, no growth in this country and too much gov't intervention by this administration. The fear of Obamacare, also put a too many companies into a standstill, 30% of companies said they are dumping healthcare to the Obamacare, as will as >1380 waivers, AARP, Navada, Unions. respectively, Obama's job stimulus, Mcd's added 50% work force(fox bus. news), the other 50%, a more Fed's jobs creations but not the privet sector. This administration said, a 2 millions new jobs created, but where is it?

June 12 2011 at 9:51 AM Report abuse rate up rate down Reply
msolo50318

what will ultimately crash everything is the masses of baby boomers retiring and selling their portfolios at once into a market with less buyers. it will be no different than any other item flooding the market place and it will drive prices down even more unless they are artificially propped up by printing more money or some other short term facade

June 12 2011 at 7:19 AM Report abuse rate up rate down Reply
msolo50318

the fall of communism is what crashed our economy. we would never have been competing with the likes of China for energy or in manufacturing.

June 12 2011 at 7:11 AM Report abuse rate up rate down Reply