Dow 40000

[wompo]

Super-bulls set sights on Dow 40,000

A growing group of forecasters see a monster-sized rally just ahead

http://moneycentral.msn.com/content/P132295.asp?GT1=7160

Guess I will be rich soon

 

[wildcat]

Ahhh book sales must have slowed down for Dent

Care to provide us with any fundamental details in the article? Well, just look at a drop here and see a rise there and today's market will act exactly the same. Right....

How could the Dow (full of big caps) suddenly explode to 40,000? I suppose earnings and profits will grow at a rate to justify that kind of move? Ha

Article interrupted my 'praying for a huge drop' session

 

[laurence]

We all know markets can behave irrationally, but while I would enjoy the ride, I'd be sold out of the market no later than 30k.

 

[HFWR]

It's a typo...

Should be 400000!!

 

[73ss454]

I think maybe 4000!

 

[frayne]

These guys think differently.

http://www.usatoday.com/money/markets/us/2005-10-16-bears-usat_x.htm

 

[HFWR]

Based on historical average PE ratio (15.11 +/- 38.5%), the Dow should be 9138.

(Based on the 9/30 close)

 

[HFWR]

Dow may dip below 10,000 by yearend - JPMorgan

http://yahoo.reuters.com/financeQuo...tfh94104_2005-10-17_20-18-48_n17393837_newsml

NEW YORK, Oct 17 (Reuters) - The Dow Jones industrial average may end 2005 below 10,000 as lower margins and higher interest rates are likely to hurt corporate profits, pushing stock prices down, JPMorgan's global equity analyst Abhijit Chakrabortti said.

 

[Dawg52]

As I've said before, I'm not gonna worry about what the "experts" forecast. I will continue with by same old 1/3 stocks, 1/3 bonds, and 1/3 other(cd's, reits, commodities) and hope for the best. I've done more damage over the years trying to market time that I'm gonna just stay the course with this allocation. Not gonna get rich, but hopefully won't get hit too hard either.  

 

[wabmester]

Based on historical average PE ratio (15.11 +/- 38.5%), the Dow should be 9138.

Dent has been predicting DOW 40,000 since 1993, I think. He says it'll happen in 2008. He's also betting that the economy speeds up to 7% GDP growth (from about 3.5% now).

If P/E levels stay the same, 7% growth would get us to 12,700 by 2008. So, he's apparently betting that P/E's will tripple to around 60.

Anything's possible, but some things are very improbable.