Why the Dow could hit 26 000 by 2016- MSN Money
This is a very interesting article about how the Dow is destined to hit 26,000 in the next three years rather than having a 30-50% decline. The author predicts another 20% year for the Dow in 2014 followed by two 15% gain years. Believe it or not, it is possible if we don't have a major war to scare everyone and if the economy continues to stay positive. Currently, we have no bad signs economically.
The author also pointed out that thrifty people will eventually leave bonds and stable investments because the money they are earning just covers inflation. They are not getting ahead any. This is a very important issue for those who want to retire with a significant nest egg. They will start to take chances. Then, in a few years, when the last buyer has joined the crowd, the stock market will indeed fall because there is no one left to buy. It will be like 2000 when the market was extremely overvalued, too.
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