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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