Tag Archives: Dow Jones Industrial Average

What would you say if I told you that the S&P 500 is going to 7,000, the Dow Jones Industrial Average is going to 56,000, and the Nasdaq is going to 29,000 in the next 6 to 7 years. If you're waiting for the punch line, convinced that it's a joke well, it's no joke. Here's why.

Interest rates will not rise again in our lifetime. Why, you ask? Because the leverage in the system would collapse the very financial assets and governments which underpin the global financial systems. It is INFLATE or DIE and it provides the additional benefit of feeding insolvent welfare states and the socialist politicians to feed their "useful idiot" supporters. Today’s missive will put some meaning into that observation.

The Dow Jones Industrial Average is a fabricated number that has little relation to the actual average performance of the stock market as a whole. For sure, it is not industrial in nature, and by no means is it an average. It's like creating an all-star team of the very best-performing companies and broadcasting to the world that this is the average of all companies out there.

A new position paper by Seth J. Masters, chief investment officer of Bernstein Global Wealth Management, entitled “The Case for the 20,000 Dow” is startling. Masters maintains that the odds Dow will rise by more than 7,000 points - an increase of more than 50% - by the end of this decade are excellent. [Below is his argument for such a lofty expectation.] Words: 715

A new position paper by Seth J. Masters, chief investment officer of Bernstein Global Wealth Management, entitled “The Case for the 20,000 Dow” is startling. Masters maintains that the odds Dow will rise by more than 7,000 points - an increase of more than 50% - by the end of this decade are excellent. [Below is his argument for such a lofty expectation.] Words: 715

Seasonality tells us that statistically the months from the end of October through the end of April are in fact the best months of the year for investing while the six months from May through October (the “sell in May and go away” strategy), are the worst but is there any validity to what’s sometimes known as “the Halloween indicator?” [Let's take a look.] Words: 460

Many people missed the market’s enormous appreciation during the latest equity bull market because they were late to the game or chose to sit on the sidelines. If you’re one of those people on the sidelines who has been debating whether to get your feet wet in today’s market—now could be your chance. Citigroup says there’s roughly a 90% chance markets could move higher over the next six months—and a 97% chance over the next year—according to historical data. On average, the market bounces 8.9% the following six months and 17.3% the following year. Words: 1292

Most first quarter 2011 earnings reports are in and...over three-quarters exceeded expectations... [with] results showing a desirable combination of growing revenues, profitability and cash flow ... [As such,] today's stock market valuations are conservative compared to typical bull markets accompanied by investor enthusiasm. In the past, using 2011's estimated earnings, the average P/E ratio could easily be 15 and...that would put the Dow Jones Industrial Average (DJIA) at 15,000 today – about 20% above today's level. [Were we to] add in high optimism like the kind we've seen in other investments recently, a 20 P/E ratio would be possible - and the DJIA would be 20,000 – 60% higher [than it is today! Let's take a look at the possibility.] Words: 540

Recent market action is causing much anxiety [with] pundits hyperventilating about sovereign loan defaults. [Now,] after Ireland, their attention is focused on Spain and other European countries. The world seems to be filled with worryworts (which is bullish as the market always climbs a wall of worries) [- but worry not]. In terms of magnitude and duration, this bull market will surprise all. In fact, what investors are witnessing is one of the greatest bull markets on record. Within two years, the DJIA and the S&P will reach record highs. Beyond that, the S&P could well double from the current levels. Words: 852

SPY, QQQQ, DIA, IWM, EFA and EEM. These are the six ETFs every investor ought to know. Get familiar with them. Add them to your watch list, and be aware of how they could fit into your portfolio. Words: 1015