Seth Masters, Chief Investment Officer at Bernstein Global Wealth Management, explains why he sees the Dow hitting 20,000 by 2018.
While some are predicting a market correction of as much as 20%, one asset manager says the Dow Jones Industrial Average is headed up to 20,000 in as little as five more years.
Seth Masters, Chief Investment Officer at Bernstein Global Wealth Management, manages over $70 billion in assets under management. He recently shortened his forecast for seeing the Dow at 20,000 from the end of the decade to 2018.
To be sure, that's not an incredibly radical notion. If the Dow went up just 4.6% every year until 2018, it will hit 20,000 given Tuesday's closing price of 15,973.13. The average annual return for the Dow from 1988 to 2012 was 7.26% and it's up 22% so far year-to-date.
Some maintain that Federal Reserve Bank's $85 billion monthly monetary stimulus policy is the only source the bullish stock market. However, Masters says the market's new highs are theRead More »from Bernstein Asset Management CIO: Here’s when the Dow will hit 20k