Wednesday, May 15, 2013

Dow 20000, Suddenly Not So Crazy




Steven Russolillo writes:  When Seth Masters published a white paper in June 2012 titled “The Case for the 20,000 Dow,” some people scoffed. The Dow was well below 13000 and in the early stages of recovering from an 8% pullback.

“It certainly got some attention because it was so different from the prevailing mood,” Masters, chief investment officer at Bernstein Global Wealth Management, said in a chat with MoneyBeat last week.

Fast forward almost a year and projecting Dow 20000 by decade’s end doesn’t seem so crazy.  The Dow has rallied some 2500 points since Masters published his piece. The blue-chip average, up 16% this year at 15215.25, is comfortably above 15000 and is setting fresh records almost daily. An improving economy and an extraordinarily accommodative Federal Reserve, combined with waning fears in Europe and Washington, have fueled the massive rally…..


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