Dow Hits 13,007 and Climbs - Vindication! On to 16,000...
By Ian L. Cooper
Back in December 2006, Red Zone Profits’ Chris DeHaemer predicted that the Dow Jones Industrial Average would hit 13,000 by January 2007. While two months optimistic, the DJAI crested this threshold for the first time.
What’s Chris saying now?
“I stand by my prediction that the Dow will climb to 16,000 by the end of 2008. Think about this. It took the Dow just 129 trading days to climb from 12,000 to 13,000. This is after it to the same 30 blue chip stocks 7 1/2 years to go from 11,000 to 12,000.
Given that the average historical gain of the Dow is around 10% a year – it is overdue for a large ramp up. The trip to 16,000 would only be a 23% gain. And what’s the average gain for the third year of a second presidential term? 22%. So, I may be reaching a bit. But my money is in the blue chips…
It’s also in a number of global commodity stocks, one leading purveyor of online mahjong, and an undervalued victim of a naked short. But that’s how I roll…”
Good old Chris, the prognosticator of future fortunes. Methinks 16K comes true.
Take care,
Ian L. Cooper, Editor, Red Zone Profits
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