Wednesday, July 20, 2016

Why 26,000 Dow Jones Is Inevitable

I would guess by now, that everyone recognizes that there are no good organic reasons for the stock market to go much higher; that is, beyond ranges associated with normal market metrics, i.e. PE's are completely in an insane zone, and have been for many years.

Yet, I have been predicting 26,000 on the Dow Jones for many years; for reasons that I have not entirely revealed, yet.

But here is yet another fundamental reason that the market is inevitably charging ahead:
In today's global investment markets -- If you are in Britain (facing Brexit BS, for next three years), Europe, S.A, Asia or Middle East and you have money management responsibilities and you have to put $10 to $50 million to work today, as in to grow (to keep your job!); where do you put that money?

Britain? 
Europe? 
S.A?  
Middle East?  
Asia? 

No, you put some - or a lot - in the USA.

And then what do you buy?  

Bonds? 
Really over-priced Real Estate -- with no quick exit?  
Cars? 
Paintings?

No!  NYSE -- with your index finger on the sell button!!

And all that foreign money is piling in Now; and it will eventually pull in the Sheeple here in the USA - somewhere around 21,500 to 23,000 on the Dow!

And thus 26,000 on the Dow - or higher - here we come; simple, really simple.

No comments:

Post a Comment