When former bears call for a ‘New Golden Age’ of the stock market, with targets of the DOW set at 100,000, well, it is clearly time for bulls to beware.
In fact, the Dow 100,000 prediction of this former bear is explained as follows:
‘This is not some pie in the sky prediction.
It simply assumes a continuation of existing trends in demographics, technology, politics, and economics. The implications for your investment portfolio will be huge.’
I mean, markets always continue their current trend unabated, especially since financial markets are purely linear environments . . . right!?!? So, why not set your target for 1,000,000 rather than 100,000 based upon the exact same thesis?
And, while another widely read author on Seeking Alpha, who has been bearish for the last year and a half, did not exactly turn bullish, he certainly took a major step towards the old claim that we have entered a ‘new paradigm:’
‘This idea of a “Goldilocks” backdrop characterized by solid growth but subdued inflation has become so ubiquitous that it’s being treated not so much as a way of explaining the current state of affairs but rather as a theory about how the world is going to work for the foreseeable future.’
This post was published at GoldSeek on Monday, 27 November 2017.
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