Stock market expert Mr Markman was quoted as targetting S&P500 at 3,000 in a future year by CNBC & Tech Ticker today. At this moment S&P500 is at 1212. Mr markman is very wise. If he is right, that means the stock bull market has a lot of room to go up.
Another headline today in Bloomberg : The stock market price is the cheapest in history since...... That sounds very bullish also. But I believe it.
This posting is for your information only. You must find the source so as to verify everything & the whole story. You must consult your adviser before buy,sell, hold , and before accepting any views put forward on message board.
The target does not break new ground. It is merely an extrapolation of events that have occurred in the past.
Facts: • Over the past 49 years (1960 to 2009) the S&P 500's dividends per share have grown at an average rate of 4.97% per year, from $2.02 in 1960 (3.47% x 58.11) to $21.7 in 2009 (1.95% x 1115.10). • The lowest yearend dividend yield, 1.14%, (which is also the highest Price to Dividend ratio), occurred at the end of 1999.
Assumptions: • Over the next 11 years the S&P 500's dividends will continue to grow at the same historical annual rate. • At yearend 2020 the dividend yield will once again be a ridiculous 1.14%, matching the level reached just before the dot.com bubble peaked.