Jun 30th, 2008 by Jennifer Lynn
“There’s quicksand all around us,” says 87-year old veteran investment advisor Charles Allmon. “We’re in an economy that’s tanking, we’re looking at the most significant economic downturn since the 1930s, and the dollar is going to hell.”
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Mr. Allmon has been in the stock market for over fifty years and currently manages over $200 million in assets – and has outperformed this year’s rocky market with modest gains of between 1% and 2%.
Mr. Allmon says, “Senator Obama is leading a children’s brigade, but the problem is children shouldn’t be leading this country.”
Further, the veteran adviser, who publishes a 46-year-old monthly investment newsletter, the Growth Stock Outlook, out of Bethesda, Md., made a marvelous market call last July with the Dow Jones Industrials hovering around 14,000 and bullish sentiment rampant. In an ominous warning to subscribers, he urged extreme caution, predicting the Dow was on its way to 8,500 to 9,000, which he noted was a forecast that “could be on the high side.”
With the index having plummeted more than 2,500 points since then, his crystal-ball gazing talent is not to be taken lightly.
At the time of his forecast, Mr. Allmon recalls, some subscribers rang him up and told him, “You’re nuts.” But now, he says, “They’re beginning to recognize something is really wrong in this country, and an 8,500 to 9,000 Dow is very possible.” Thursday and Friday’s wicked two-day Dow decline of 465 points, or nearly 4%, he says, may be a prelude to that drop.
Mr. Allmon’s parting words: “We’re in a bear market that’s got more to go; don’t get sucked in.”