Sunday, August 12, 2012

Dow to hit 17,000!




Holy Hannah!  Dow 17K!  That’s the rallying cry from analysts and traders on the Street, according to New York Post reports.  Before you scoff, consider this: The Dow Jones industrial average already has soared more than 86 percent from the crisis lows of spring 2009, when the index stood at 6,627 as the “green shoots” started blooming.  Despite the rest of the economy, or perhaps because of it, equities are soaring.

Now, two market forecasters are predicting another market rally — one that will lift the Dow 4,000 points from its Friday close of 13,207.  Wharton School professor Jeremy Siegel argues there’s a 50 percent chance — or better — of the Dow tipping 17,000 by the time the president takes the oath of office. Siegel says stocks are reasonably priced — in fact, the cheapest they’ve been since the 1950s.

Richard Bernstein, a former Merrill Lynch chief investment strategist, goes even further.  He says the US is at the beginning of a 10-year bull market in equities. Bernstein notes how the S&P 500 index has outperformed the fabled Brazilian, Russian, Indian and Chinese stock markets for the past four years as market fundamentals continue to improve….


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