Home > Why DOW 20,000 Is Inevitable: Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI)
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Why DOW 20,000 Is Inevitable: Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI)

February 25th, 2013

bullish buyEconMatters: Dow Record in sight: We are 200 points from breaking a new high in the Dow Jones Industrial Average (INDEXDJX:.DJI) which got me looking back at assets over the last 25 years in relation to the value of the US Dollar Index and the overall money supply.

25 years in Markets

Have you ever wondered how billionaires continue to get RICHER, while the rest of the world is struggling?


"I study billionaires for a living. To be more specific, I study how these investors generate such huge and consistent profits in the stock markets -- year-in and year-out."

CLICK HERE to get your Free E-Book, “The Little Black Book Of Billionaires Secrets”

Some of the best performing assets are the stock market and gasoline with bonds and housing putting in steady gains. Of course with all assets you get a whole lot more bang for your buck if you happen to time the market correctly. And assets like Stocks, Housing and Gasoline all have crash periods where Dow components go bankrupt and are replaced, homeowners lose their homes, and in the financial crash any Gasoline investor would have been forced out of the market.

Need to be Invested

But make no mistake the long-term trend is that you want to be invested in something that appreciates in value, you can get out of it if you need to as in liquid, and is going to be attractive to other investors over the long haul. But you have to be invested to take advantage of the trend of the growing money supply, currency in circulation, printing press phenomenon that ultimately underlies all asset values.

Your Grandpa was on to something

Whether it is the price of a car, a new house, the price of gasoline, a movie ticket, or a good stock there is going to be more money created each year chasing these assets in the system. This represents the phenomenon of “when I was a kid a coke cost a nickel” or you could buy a home or a vehicle in the 1950`s for prices that are unrecognizable today.

Dow 20,000 only a matter of time

In looking back at history of markets, if we take the Dow Industrials, there is no doubt we are going to blow past Dow 15,000, 16,000, 17,000 and so on based upon currency creation effects alone. The fact that markets are liquid, capital will flow in and out, there will be major pullbacks, those who fail to market time will get crushed at times, but make no mistake Dow 20,000 is a foregone conclusion.

Have you ever wondered how billionaires continue to get RICHER, while the rest of the world is struggling?

“I study billionaires for a living. To be more specific, I study how these investors generate such huge and consistent profits in the stock markets — year-in and year-out.”

CLICK HERE to get your Free E-Book, “The Little Black Book Of Billionaires Secrets”

 

If we filter out the noise, and it is considerable at times, the unmistakable point is that most assets appreciate over time. The last 25 years show quite clearly in Gold, Lean Hogs, Real Estate, Stocks and Energy the benefit of being invested, especially in relation to the ever-present growing money supply in the economy.

I would say that if the economy cooperates even modestly over the next three years that the Dow 20,000 milestone will be reached. For how soon we get there will depend upon other variables for sure, but watch how the market performs once we break through the 14,200 level, and start putting in new highs in the other indexes. The pace can really take off once markets are in unchartered territory, and we can start taking 1000 point monthly clips that will leave you speechless.

Have you ever wondered how billionaires continue to get RICHER, while the rest of the world is struggling?

“I study billionaires for a living. To be more specific, I study how these investors generate such huge and consistent profits in the stock markets — year-in and year-out.”

CLICK HERE to get your Free E-Book, “The Little Black Book Of Billionaires Secrets”

 


And of course Dow 20,000 isn`t going to happen without some pain along the way, but make no mistake it will happen, and it is closer than you think! We are on the verge of taking that next leg up in the Dow, in fact, we should set a new high pretty soon; enjoy the ride as this breakout has been a long time coming.

This article is brought to you courtesy of Dian L. Chu from EconMatters.


NYSE:DIA


 

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  1. Disco
    March 6th, 2013 at 11:52 | #1

    Oh joy. Predictions of new highs. Remember when they predicted the Dow would hit 50,000 back during the dot-com boom? Apparently the author of this article doesn’t remember that.

  2. Billy Bong
    February 27th, 2013 at 11:51 | #2

    REAL HEADLINE

    CEOS, EXCUTIVES, LARGE SHAREHOLDERS MAKE TRILLIONS

    Writing calls and buying puts on the world’s financial instruments, while telling average Joe to buy buy buy.

  3. Billy Bong
    February 27th, 2013 at 11:46 | #3

    HEADLINE: Future date.

    Black pool derivatives take a hit with the European backruptcy. Levrage pegged at 100 to 1 with money that does not even existe.

    Dow hits 5000.

    Government screws the working person, and scraps all social programs to finance the second bank bailout, black market slavery is common place, and the most secure jobs that are still hiring are jail guards/wardens.

    China takes advantage of the US weakened position and takes over ASIA.

    All is not lost!

    US triples its debt, tells the public debt is just a myth and we than get a dow going to 30 000 before the end of the current system in 2020 something, when world governments go bankrupt and millions of baby boomer retires strive.

  4. tradersir
    February 27th, 2013 at 07:27 | #4

    Most probably the market will come down. please compare the US Dollar Index chart and Dow Chart. you can understand the relation. The US dollar index chart is in the verge of going upside. so, with no other go, Dow jones will come down. It may be a sharp correction in stock markets across the world or would be a gradual slide. but Stock markets will come down, if US Dollar index started going up.

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