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10-Year Bull Market Has Begun; Dow Will "Double For Sure", Hennessy Says

Posted Oct 01, 2009 08:00am EDT by Peter Gorenstein in Investing
Related: dia, ^dji, spy, ^gspc, qqqq

The Dow Jones Industrial rose 15% in the third quarter, closing the book on its best 3-month span in 11 years.

Skeptics calls it a classic bear market rally.

Neil Hennessy, chief investment officer of the Hennessey Funds, has a more positive assessment. 

Much more positive.

"I think we're starting a 10-year bull market," he claims. During that time, he believes, the Dow will "double for sure" from current levels.

His reasoning?

Stocks are the only reasonable money-making investment in this current environment of low interest rates. Why "put your money into a 30-year U.S. government bond at 4% and wait 30 years to get your money back?" he asks.

Instead, he says, buy the Dow Jones Industrial Average. The 30 components are yielding a 3% dividend and, unlike Treasuries, offer a growth opportunity.

Plus, with trillions in cash on the sidelines waiting to get in the game, the market's headed in one direction: Up.

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