Dow 20,000 is pretty likely: WSJ Editor-in-Chief Gerard Baker

Yahoo Finance

On Tuesday when The Wall Street Journal turned 125 years old, the Dow (^DJI) lost almost 118 points, ending at 16,907 after trading lower all day. It was the second down day since the Dow reached a record 17,068 last Thursday, just before the 4th of July holiday weekend.

But it's come a long way since hitting its bottom near 6,500 in March 2009. It has done "incredibly well, almost tripled in those five plus years," says Wall Street Journal Editor-in-Chief Gerard Baker. He spoke with Yahoo Finance from the Nasdaq where he rang the opening bell.

The Journal debuted 1889, just 24 years after the end of the Civil War, and the Dow Jones Industrial Average followed soon after in 1896. It included 12 stocks then and closed just under 41.

Yahoo Finance asked Baker what his predictions were for the market in the future, Dow 20,000 perhaps?

His response: “Will the Dow hit 20,000? I’d say that’s probably pretty likely. I’m not going to say when that will happen." But he thinks it will happen "as long as the right circumstances are in place for the U.S., such as strong and deep capital markets, entrepreneurial spirit and a relatively low tax environment.”

The WSJ Chief did make one prediction however. When asked who he thought would take home the World Cup: he said he's putting his money on Germany, and it looks like he predicted well.

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