Dow Jones 36,000 may remain a pipe dream.
But analyst expectations for 20,000 could soon be reality.
In fact, as of last week, the consensus one-year estimate on Wall Street is now 20,003.93, up from an earlier projection of 19,914. And it’s not as farfetched as you’d think especially in such a low interest rate environment with no real rate hike threats on the horizon.
Despite true unemployment numbers, poor GDP, negative wage growth, weak productivity, slowing business investment, higher inventory to sales ratios, city riots, slowing overseas growth and the weakest recovery since 1949, nothing can stop the bull market run…
Billionaires, analysts, and hedge fund managers aren’t so sure the rally can last much longer, though. A very bearish Marc Faber believes, “stocks are likely to endure a gut-wrenching drop that would rival the greatest crashes in stock market history.”
- Stanley Druckenmiller told us to “get out the stock market, own gold,” expressing skepticism about the current market environment and a slowing Chinese economy.
- Jeffrey Gundlach, CEO of DoubleLine Capital said, “Sell everything. Nothing looks good here. The stock markets should be down massively but investors seem to be hypnotized that nothing can go wrong.”
- Carl Icahn warned that, “I don’t think you can have (near) zero interest rates for much longer without having these bubbles explode on you.”
While it’s not time to panic, it’ll be interesting to see what happens next.