The Dow Jones has gone from strength to strength in recent trading sessions. Now, leading commentators point out that the market will continue being hot through the decade. There is even speculation as of now that the Dow Jones index will hit the 20,000 mark by the end of the decade.
The Dow Jones finished yesterday’s session at an all-time high of 15,387.52.
It needs to be taken into account that such predictions are not 100% reliable, especially as the markets cannot always go straight up. For example, there are just so many factors driving the Dow and other leading indices these days. This means you need to understand all of the dynamics which are relevant when it comes to the Dow’s movement.
There are also other predictions of the Dow hitting the 17,000 mark by the end of 2013. This is a tough prediction, but the likelihood of this happening is 50/50. It is true that there is a lot of confidence in the financial markets these days. However, the reality is that there are many flaws with regards to the U.S. and global economy, which investors must take into account.
The economic stimulus which the U.S. government is boosting into the U.S. economy is currently pushing up the Dow Jones, but once traders understand that the long term effect of the policy is disastrous, the Dow Jones could go tumbling back down. That is why you will need to think very carefully while you trade the Dow Jones each trading day.