What's Next: Dow 12,000 or Dow 10,000?

Seeking Alpha ^ | 10-24-2010 | David Sterman

[BenLurkin]

12,000 and then 8,500 within a year.

[raybbr]

12,000 and then 8,500 within a year.

You mean the republicans won't be able to rescue the DOW? Heretic!

[Eric in the Ozarks]

18,000 Dow.
Come on, babe !

(actually, I’m out of the market...)

[misterrob]

Stocks are not expensive and we may be on the cusp of a long-awaited investment cycle from corporate America

The underlying fundamentals of the market are terrible. Companies are laden with debt and outside of the giant tech companies and banks sitting on money then there isn't much to crow about here. QE II is a debasement of the currency which weakens the purchasing power of the consumer. Already we are seeing price increases in hard goods from commodity spikes. At some time soon earnings are going to take it in the shorts and the bubble bursts

[wmfights]

12,000 and then 8,500 within a year.

Why? Where's the money going into equities going to go?

[bill1952]

The impact of the Fed's imminent Quantitative Easing:

There it is right there.

As long as the government prints money, the market will snap it up. Of course, in time, your money wont be worth that much...

[Old Retired Army Guy]

If the republicans win big in November, I think you will see a short term rally and then a small pullback pending what Congress does on Bush Tax cuts. If those tax cut extensions are handled right, it will hit 12000 by years end.

[BenLurkin]

Good question. Wherever it went to in 2008, and a lot of people would like to know the answer to that!

[traderrob6]

“Why? Where’s the money going into equities going to go?”

Mattresses.

[Eric in the Ozarks]

Bond funds.

[PugetSoundSoldier]

DOW 12,000 then DOW 15,000, and probably DOW 20,000 by this time next year.

Of course, that’s in USD; if you valued it in EUR, it would be DOW 9000, then DOW 8000, then DOW 6500.

The DJIA will go up because the value of the USD will fall.

[piytar]

DOW 20,000 as QE devalues the dollar to worthlessness...

[PROSOUTH]

I’m back where I started but behind two years, can you do that? Yeah........................

[CommieCutter]

I agree. I think the stock market IS the next bubble.

[BenLurkin]

A very real possibility.

[UnbelievingScumOnTheOtherSide]

You mean the republicans won't be able to rescue the DOW? Heretic!

Republican win is already priced in.
Buy the rumor. November 3, sell the news.

[utherdoul]

I don’t know alot of companies are sitting on huge amounts of cash not to mention all the money the fed has been printing. Companies with a pro bussiness congress will start spending and investing again. Once that starts see inflation skyrocket.

[SAJ]

All the good news (decent if somewhat flaky earnings, the (mis)perception that the economy is rebounding, and a sizeable Democrat trouncing on 2 November) is already priced into the market. Probably OVERpriced in, come to think of it.

This election will be the biggest "sell the news" event in years, maybe decades. The HFT scandal-about-to-break will be gasoline on the fire.

[SAJ]

Yes, indeedy. (see #19)