Dow Jones Hits 18,000
 

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

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!

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:clap2::a040: take your profit and leave the original investment. JMO :MOJE_whot:

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

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?

The Dow goes up, the Dow goes down

And thus it will ever be

Just hang on and enjoy the ride!

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

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 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."

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.

Maybe a good time to take money off the table
 

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?

looking at my 401K, I need the DOW to hit 30,000 by 2020 to retire. :1rotfl:
My pension has been cut and SS is iffy. :ohdear:
Merry X-mass

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

The DOW is only a handful of stocks............I prefer a much broader index. Also, P/E is much more important than the DOW (to me) .

Unless there is a hiccup and they decide to wait until 2016 - just like they did in 2012, 2013, and 2014.

Z

Happy Birthday

I think you hit it. You can not time the market. The key is not to have to sell shares when the market is down.

Thank you!!

Z

I have observed the market does goes down a bit after reaching a new high.

I am sure this Friday, we will probably see a slight dip of 200 points or so as people take profits out of the market. I personally don't believe in trying to time the market. When it goes down, the inclination is to sell but then most people miss the upswings.

Buy low and sell high is a nice theory but how many people make money off of the swings in the market? GOD bless those that do, as they are geniuses.

Two weeks ago it dropped 1,000 points and the following week, it went up a little more than a 1,000 points.

I am hoping it will rise to 20,000. Then it will be interested to see if it goes up further, or start heading down for a correction.

Google the dows historical track through today.
It goes up and goes down. BUT the trend over the years has ALWAYS been up!

As for not being able to discuss the Dow without embarking into politics.....the minority opinion is noted.

A diversified portfolio based on risk and age ........has worked foe me (and many others) for many years. And as long as interest rates remain pitifully low, the market offers the best return.

That's in part because the big investors all pull their profits and secondly investors are searching for more clues on how the market will react but by time they figure it out its already incorporated.

As long as the junkies continue to get their fixes the market and all the other bubbles will do well. But eventually the patient OD's. Vanguard tells me I should be 87% stocks 13% Bonds and 0% Cash. My 92 year old in-laws are told by Vanguard to keep only 10% in Cash!!! When Bubbles last this long people begin to believe they are the norm! Very dangerous in my opinion or as the young people say IMHO.

You can get as much as 1% on a high yield savings account if you shop around.

Look for internet banks. Discover had 0.8 last I looked. They are easy to use.

The DOW is now below 18,000. Where will it be at the close of 2015?

Anybody hazard a guess?