[2BNTV]

I predicted DJ would reach 18,000 a couple of years ago.

Do you think it will go up to 20,000?

Do you think we will be in for a major correction?

http://money.cnn.com/2014/12/23/inve...html?hpt=hp_t2

[kcrazorbackfan]

I thought a couple of days last week was the start of the major correction; I even called my money manager in Springfield, MO with concern about that; however, it was just the opposite. WOW!

[tomjbud]

Historically, the Dow does well under Democratic administrations. However, what goes up must eventually come down. It is probably a good time to rebalance your portfolio and take some profits.

[folkh]

Originally Posted by tomjbud

Historically, the Dow does well under Democratic administrations. However, what goes up must eventually come down. It is probably a good time to rebalance your portfolio and take some profits.

I believe good advice take your profit and leave the original investment. JMO

[zcaveman]

So when are they going to raise the interest rates? I am tired of .02% on my interest bearing accounts so that the banks can rake in the profits.


Z

[Oneiric]

Aren't the stock prices extremely rich because of the Fed artificially holding interest rates down for so long? Corporate balance sheets are not that rich. Since everything investment wise returns to the mean, won't there eventually be a severe correction before the market eventually proceeds upward again? Some pundits have predicted a ROI of only 2-3% for several years. Right now it seems there is no great choice. Bonds are too expensive, stocks overpriced, reits will suffer when rates rise unless they are triple net lease, oil and gas investments are, for now, not prudent. What do you think?

[jblum315]

The Dow goes up, the Dow goes down

And thus it will ever be

Just hang on and enjoy the ride!

[Moderator]

A number of posts had to be deleted...either off topic, personally directed, or political.

The topic is Dow 18000 and the economy/investment outlook.

Please stay on topic or the thread will be closed.

Moderator

[Chi-Town]

How long can one keep saying the Fed or quantatative easing like it's a magic wand? In actuality it is earnings that drive the market. This is from Morgan Stanley Smith Barney.

[pbkmaine]

I like the explanation Warren Buffett gives, quoting his mentor and teacher Benjamin Graham: "In the short term, the markets are a voting mechanism. In the long term, they are a weighing mechanism."

[Villages PL]

Originally Posted by Chi-Town

How long can one keep saying the Fed or quantatative easing like it's a magic wand? In actuality it is earnings that drive the market. This is from Morgan Stanley Smith Barney.

I agree that, basically, it's earnings that drives the market. But I would just like to add that low interest rates, among other restructuring measures, helps to increase earnings. Many companies have restructured their debt and are now paying a lot less interest.

Of course some will complain that interest rates are "artificially low", but there's nothing artificial about better earnings.

[Chi-Town]

Originally Posted by Villages PL

I agree that, basically, it's earnings that drives the market. But I would just like to add that low interest rates, among other restructuring measures, helps to increase earnings. Many companies have restructured their debt and are now paying a lot less interest.

Of course some will complain that interest rates are "artificially low", but there's nothing artificial about better earnings.

That makes a lot of sense. Thanks.

[TrudyM]

I am trying to decide given the Dow is so high if it would be a good time to take some money out for a bit. Are any of you doing this?

[Cisco Kid]

looking at my 401K, I need the DOW to hit 30,000 by 2020 to retire.
My pension has been cut and SS is iffy.
Merry X-mass

[dewilson58]

Originally Posted by zcaveman

So when are they going to raise the interest rates? I am tired of .02% on my interest bearing accounts so that the banks can rake in the profits.


Z

Third quarter of 2015.....just in time for Christmas.