Financial Magazine Makes Another Bold Prediction
A little over a month ago the Financial Magazine, Barron’s, made a bold call on it’s magazine cover stating “GET READY FOR DOW 20,000.” Just this last week the Dow finally hit the 20k mark for the first time in history in President Trump’s first week in office.
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Now Barron’s is prepping investors with it’s next bold prediction: “NEXT STOP DOW 30,000.”
While this may seem far fetched it is worth noting that Barron’s doesn’t forecast this major milestone anywhere in near future. In fact, Barron’s says that the Dow can hit 30,000 by 2025 but only if certain things happen, or better yet, don’t happen during Trump’s Presidency.
From Zero Hedge:
In fact, Dow 30,000 is just around the corner… well by 2025. All President Donald Trump has to do, according to Barron’s, is “avoid stumbling into a trade war—or a real war.” Some of the profound insight behind this forecast so reminiscent of the infamous “Dow 36,000” prediction which hit just around the time of the last market bubble…
…Then again, perhaps Dow 30,000, which would require China to inject in at least another $30 trillion in debt in the next decade without somehow hitting the Minsky moment tipping point, is not so certain: it all depends on whether Trump can avoid war, either literal of metaphorical:[From Barrons:]
“a few of the new administration’s policies pose a serious threat to the economy and stock market. The most evident one last week was the trade spat with Mexico, with the White House at one point floating the idea of a 20% border tax on Mexican goods entering the U.S. If Trump gambits like this were to trigger a trade war, the world economy would suffer. The Dow would have a hard time getting to 30,000 by 2025.”