This prediction does make for a scary headline and gets Louise Yamada some buzz. But, Yamada is a technical analyst and is saying absolutely nothing about the fundamentals here. You should also note that Jeremy Grantham has said similar things about the S&P hitting 450.

Louise Yamada is one of Wall Street’s foremost technical analyst. She is quite bearish and thinks the Dow Jones Industrial Average could go to 6000. Her advice: sell stocks.

Yesterday morning, I heard Louise Yamada on Tom Keene’s show on Bloomberg Radio giving her assessment that stocks may break below 2002 lows. I mentioned this in yesterday’s news round-up. But, now I have the audio for you as well.
Yamada is a much followed technical analyst so her opinion has weight. Since at least [...]

Last night after the market closed I listened to a Bloomberg on the Money podcast with guest Louise Yamada, a well-known technical analyst. A lot of people in the fundamentals crowd stay away from looking at technicals, but in a market like this one, they cam provide some extra information.
Below are a few snippets [...]

In this weeks Barron’s, Louise Yamada writes that financials in the U.S. have not fallen nearly enough in respect to their meteoric rise in the U.S. indices. She predicts further pain in the sector to where they represent less than a double-digit percentage of the S&P 500. I am certainly bearish on financials [...]