If you really stop and think about, Dow 20,000 (^DJI) isn’t as crazy as it sounds. Sure, the market loves big round numbers and all, but if you look back in history you’ll discover that it’s been 14 long years already since the original “Dow 10,000 hats” were unveiled in March of ‘99.
If that seems like ages ago, you’re right. That’s because the 30-stock blue chip benchmark took just over eight years to double from 2,500 in July of ‘87 to 5,000 in November of ‘95, and then only 40 months to double again.
That’s just part of the reason why Joe Fahmy, the managing director at Zor Capital, thinks the Dow could notch the next 25% in the next twelve months, and finally take out the big two-zero.
“What’s lead us here is the Fed’s accommodation, and a coordinated global effort of easing,” Fahmy says in the attached video. “As long as that continues then I don't see a reason for a break.”
Certainly a bold statement, but also one that needs to be clarified: no break in the up-cycle does not mean