Louis Navellier Predicts Dow Industrial Average to Hit 40,000 Points in 2020
RENO, Nev., Dec. 23, 2019 /PRNewswire/ -- Louis Navellier, Chief Investment Officer of Navellier & Associates, a Nevada-based asset manager, released a comprehensive outlook and analysis on the economy and financial markets for 2020. Specifically, Navellier forecasts the Dow Jones Industrial Average (Dow Industrials) to hit 40,000 points by the end of 2020.
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Currently, the Dow Industrials yield an average of 2.7%, while the 10-year Treasury note yields approximately 1.9%. If the Dow Industrials rise 50%, then its dividend yield would match the yield on 10-year Treasury bonds. As a result, Navellier's forecast of 40,000 on the Dow Industrials in 2020 is possible since yield focused investors are still pursuing quality dividends as well as a favorable 23.8% maximum federal tax rate on qualified dividends.
"2019 has been an exceptionally strong year for the stock market because yield-hungry investors were chasing stocks with high dividend yields, since the S&P 500 had lackluster earnings," said Louis Navellier. "2020 should be an even better year for the stock market since the current inflation environment is 'Goldilocks' because it's not too hot and monetary policy is stable."
Additionally, Navellier predicts that the political unrest and uncertainty will be resolved in 2020, as it is a presidential election year. Historically, the stock market likes presidential election years, as candidates present their plans. The optimism tends to boost consumer confidence.
"No matter what one thinks of our current president, he is a vocal cheerleader for the U.S. economy and the stock market," noted Navellier. "On the campaign trail, you can bet he will champion the stock market in 2020, beginning with his State of the Union address in February."
Navellier will be elaborating on his bullish forecast at MoneyShows, FreedomFest, and other conferences in 2020. Learn more about these events here: https://navellier.com/upcoming-events/
Navellier & Associates has written research for over 40 years now. Each week they publish Marketmail which features thought provoking commentary by five stock market veteran contributors. The latest market developments are discussed as well as their impact on global markets, sector performance, and dividend strategies.
About Navellier & Associates
Founded in 1987 by growth analyst Louis Navellier, Navellier & Associates is a money management firm that finds and exploits market inefficiencies. The firm utilizes a disciplined quantitative and fundamental analysis system to deliver customized portfolio strategies for individual investors. Headquartered in Reno, Nevada, Navellier & Associates offers domestic growth portfolios, dividend growth portfolios, defensive tactical portfolios, in addition to sub-advising a mutual fund. For more information visit https://navellier.com/.
All investors should consider the investment objectives, risks, and charges and expenses of these portfolios carefully before investing. Navellier & Associates, Inc. claims compliance with the Global Investment Performance Standard (GIPS) and has prepared and presented this report in compliance with GIPS standards. Copy of this verification report is available upon request. All investing is subject to risk, including the loss of your principal.
SOURCE Navellier & Associates