Revisiting the Dow....
Last year when the markets were approaching all-time highs I showed you the trend and where reversals would likely go to at a maximum distance from the highs. It is simply a technical thing and no great magic crystal ball mumbo jumbo type of thing. You can see from the chart below where I told you to rebuy if indeed the market made it that low. Well, it came close and that was the time to back up the truck when it was at those levels. Since it hit around the 21,400 level the index has sustained a very powerful rally straight up almost.
Don't get me wrong you could have believed the Peter Schiff folk with their incessant crowing about the major collapse coming down the pipeline. Every year they think that we are months away from it happening. Why they stubbornly cling to their outdated and foolish predictions is totally beyond me, but I have to give them credit. They do.
Funny you never hear much any more from Harry Dent. I guess he got tired of getting it wrong. Don't get me wrong if you were looking strictly at demographics alone he would have likely been right more than once. In the free markets, demographics plays a major role in how herd behavior manifests. However, those times are long gone.
We should expect a rally in the DOW to around the 28-29,000 mark before a move back down to the 26 area. What we have to keep in mind is that the inflation-adjusted DOW should be here. So it is being maintained at these lofty heights by central banks until who knows when. As the boomers fall away over the next ten to fifteen years there will be gaps that have to be filled and services that are going to collapse. They are in truth no longer needed and haven't been needed in quite some time.
I am a little nostalgic and so it is kind of a sad time for me as the hippies and yuppies pass away, taking their strange and different ideologies with them. I was fortunate enough to live in their time which as it turned out was one of the greatest boom times to ever be alive.
The SP will rally too. So will the NASDAQ.
I would not want to be managing large amounts of money in this day and age. It makes no sense in a sideways market. Anyway, keep buying the dips folks. This run is just getting started.
Don't get me wrong you could have believed the Peter Schiff folk with their incessant crowing about the major collapse coming down the pipeline. Every year they think that we are months away from it happening. Why they stubbornly cling to their outdated and foolish predictions is totally beyond me, but I have to give them credit. They do.
Funny you never hear much any more from Harry Dent. I guess he got tired of getting it wrong. Don't get me wrong if you were looking strictly at demographics alone he would have likely been right more than once. In the free markets, demographics plays a major role in how herd behavior manifests. However, those times are long gone.
We should expect a rally in the DOW to around the 28-29,000 mark before a move back down to the 26 area. What we have to keep in mind is that the inflation-adjusted DOW should be here. So it is being maintained at these lofty heights by central banks until who knows when. As the boomers fall away over the next ten to fifteen years there will be gaps that have to be filled and services that are going to collapse. They are in truth no longer needed and haven't been needed in quite some time.
I am a little nostalgic and so it is kind of a sad time for me as the hippies and yuppies pass away, taking their strange and different ideologies with them. I was fortunate enough to live in their time which as it turned out was one of the greatest boom times to ever be alive.
The SP will rally too. So will the NASDAQ.
I would not want to be managing large amounts of money in this day and age. It makes no sense in a sideways market. Anyway, keep buying the dips folks. This run is just getting started.
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